Natural Capital Accounting Research Articles

Designing natural capital accounting for agriculture: perceptions of farm accountants

PurposeThis paper aims to accelerate the development of natural capital accounting via an early report of farm accountants responses to prototype natural capital accounts. The authors test an approach to co-development with this important group who are both preparers and users of natural capital accounts but are not presently included in the research or development of natural capital accounting.Design/methodology/approachSeven practicing farm accountants and three accountants with an interest in this area were interviewed to gather responses to prototype farm natural capital accounts and make changes to improve the clarity, relevance and usefulness of the accounts. The paper calls for more work in participatory co-development to speed up the development and implementation of natural capital accounting.FindingsThe authors found that all participants were supportive of the concept of natural capital accounting and the consideration of agricultural ecosystems as assets of a farm business. Most participants could interpret the accounts and saw them as useful and important to improve sustainability outcomes. Participants highlighted the need for 1) the development of reliable, consistent valuation methods that resist manipulation; 2) natural capital accounting to be affordable and provide value to users; and 3) farmers to be supported to apply and report the methods for different objectives and contexts.Research limitations/implicationsSince agriculture is a significant source of greenhouse gas emissions and changes to natural capital in the economy, information included in natural capital accounts of farm businesses is important to inform policy as well as farm management decisions. This research reveals strategies for policy makers to accelerate the supply of this information to enable market and other incentives to address urgent issues related to sustainability. Results of this study are from a limited sample of well-informed individuals and are thus preliminary. However, they highlight the need (and opportunity) to further co-design natural capital accounts in agriculture with farm accountants.Practical implicationsFarm accountants are important stakeholders in the development and implementation of natural capital accounting processes and systems, yet they are currently excluded from the science and standard-setting processes underpinning natural capital accounting. Co-development represents a fundamental shift in how the science around natural capital accounting is done and is an important step towards creating a more transdisciplinary approach to working with users. The authors show how users can be involved in developing natural capital accounting methods, standards and reports.Social implicationsNatural capital accounting is a promising method to help reverse sustainability problems, if it is co-developed with stakeholders to be useful and useable.Originality/valueTo the best of the authors’ knowledge, this research is the first to report on farm accountants’ perceptions of natural capital accounts in agriculture and to present a case study of co-developing natural capital accounts with farm accountants.

Natural Capital Accounting of the Coralligenous Habitat in Marine Protected Areas

Natural Capital Accounting of the Coralligenous Habitat in Marine Protected Areas

Role of environmental, social, and governance (ESG) investment and natural capital stocks in achieving net-zero carbon emission

This study investigates the role of environmental, social, and governance (ESG) investment and natural capital stocks in achieving net-zero carbon emissions, focusing on the Chinese economy. This study uses the data from 2013 to 2022 and applies correlation analysis, quantile process estimation, quantile-factor augmented vector autoregressive, quantile dimension regression, and robustness analysis techniques. The results confirmed that ESG investment has a significant role in net-zero carbon emission and fosters natural capital stocks in the Chinese ecosystem. The results further established that natural capital stocks significantly benefit the Chinese ecosystem and reduce greenhouse gas emissions, CO2 emission – gaseous fuel, CO2 emission – solid fuel, and carbon intensity. Moreover, natural capital stocks have a significant role in achieving net-zero carbon emissions and it accelerates gross tree cover and green agricultural yield. The study is of great interest to corporations, Chinese banks, and the government in planning and achieving net-zero carbon emissions as per Prudential Financial regulation and accounting reporting systems. Achieving net-zero carbon emission is a process-based approach; therefore, the study recommends that policymakers customize investment mechanisms and natural capital accounting standards as per the territorial requirements and execute an ecological control system to make it sustainable.

Strategic incentives and natural capital accounting for sustainable supply chain management: Measuring reputational impacts and consumers’ perceptions of the use of water through behavioural experimental studies

Within a sustainable supply chain management approach, this study investigates strategic issues that can either favour or impede the implementation of natural capital accounting. Among other things, the originality of such consists of the joint consideration of sustainability, operational, and reputational issues, forging the link between measuring the use of natural resources and preserving companies' intangible capital. More specifically, through two scenario-based behavioural experiments with a total sample of 252 consumers in the UK, we analyse how information regarding the use of water (i.e., water footprint) affects firms' reputation (i.e., trust, attitude towards the firm, word-of-mouth, brand avoidance). We also investigate consumers' perceptions when companies seek to (1) increase the transparency of their consumption of natural capital (i.e., a conceptual proxy for the adoption of natural capital accounting) and (2) rationalize this consumption (i.e., a goal aligned with the objectives of natural capital accounting). The method employed is adequate as it allows the detection and measurement of respondents' perceptions of specific issues presented in the different scenarios. The choice of the UK as the setting reflects the importance of the country in the fashion industry, as it has a solid consumer base and is home to several international fashion brands. The supply chain management scope refers to the link between water consumption (which often takes place in the production of raw materials (e.g., cotton) and in transformation processes (e.g., fabric dyeing, tanning) by suppliers), fashion brands' reputation, and consumers' perceptions, with the joint consideration of these four phases sustaining the delimitation. Building on the premises of the resource-based view and signalling theory, the study is contextualized in the fashion industry as its current production levels require a significant consumption of natural resources, particularly water. Results show that, while the publication of the water footprint may damage companies’ reputations, initiatives aimed at increasing transparency and reducing environmental impact can reverse these losses to a large extent. In this sense, the study advances the idea that, despite possibly presenting undesirable consequences at first, the adoption of natural capital accounting can be beneficial to firms later on, with reputational gains representing important strategic incentives. Further research in different countries and industries will be beneficial to assess the possible context impact on our results.

Land use and environmental degradation in the island state of Mauritius: Governance and problem conceptions

Biodiversity and natural ecosystems underpin human life and wellbeing, yet they are systematically degraded by anthropic activity, with land use change being the direct driver most impacting terrestrial ecosystems. Since scholars argue that solving the biodiversity crisis hinges on the problem conceptions that steer governance, and since land use is governed predominantly at the national level, we seek to identify the problem conceptions expressed through the governance of the land use – environment nexus in a country where ecosystem degradation persists despite tenure security: Mauritius. Through interviews with key informants, corroborated by documentation review, we investigate the current governance systems across legislative, policy, and institutional frameworks to elicit the main governance issues that may reveal underlying problem conceptions. Our results point to weak commons and compromise approaches, which systematically enable land use changes for financial maximization at the expense of natural ecosystems. Economic optimization and ecosystem prioritization approaches were not observed despite recognition of nature’s role in the wellbeing of citizens. In this context, which may be similar in many developing countries, the introduction of biophysical and monetary natural capital accounting is recommended to provide commensurate data on the benefits derived from ecosystems and those derived from economic activities, in order to better inform compromise and prioritization.

Data-driven natural capital accounting model in Indonesia: Impacts of environmentally related economic activities on ecological processes and services

In this study, natural capital accounting (NCA) is enhanced by constructing a data-driven hierarchical model that can help improve policy decision-making. NCA enables the management and transparency of natural capital and ecological processes and services, resulting in better societal activities and well-being in Indonesia's regions; however, it does not account for environmentally related economic activities that may negatively influence natural capital, processes and services. In this study, a data-driven approach is used to address this issue. Valid attributes are identified, and a thorough NCA hierarchical model that incorporates synchronized accounting on ecology, environment-related economic activities and societal well-being is developed. This approach utilizes content and bibliographic analyses, the entropy weighted method (EWM) and the fuzzy Delphi method (FDM), which are used to validate the data-driven NCA measurements. Exploratory factor analysis (EFA) is utilized to cluster the measurements and assess their reliability. The fuzzy decision-making trial and evaluation laboratory (FDEMATEL) is used to construct the NCA hierarchical structure by considering the cause-and-effect interrelationships among attributes. The valid prioritized attributes are determined, and a hierarchical structure is built to support government decision-making processes. The findings suggest that water resource accounting, forestry production, raw material extraction, resource allocation management and resource consumption management are the criteria that fluctuate the most for practitioners and governments.

How Can Accountants Enhance (or Save) Natural and Cultural Capital Valuation? Engaging Academics: A Collaboration with CPA Canada and the Canadian Commission for UNESCO*

ABSTRACTAccountants should engage more with natural and cultural capital accounting to make tools more accessible and to ensure critical information is provided to decision‐makers. While ecological economists have continued to innovate and design tools, corporate‐level accounting has seemingly lagged behind. We argue that the time is now for accounting researchers and practitioners to come together to build upon these tools to advance a sustainable agenda. We examine possibilities through the novel lens of a recent Chartered Professional Accountants of Canada and Canadian Commission for United Nations Educational, Scientific and Cultural Organization (UNESCO) report that explores tools to measure natural and cultural capital at UNESCO designated sites in Canada. From here, we pose a variety of questions, critiques, and pathways for researchers and practitioners alike.

Balancing the books of nature by accounting for ecosystem condition following ecological restoration

Demand for ecological restoration of Earth’s degraded ecosystems has increased significantly since the adoption of The Kunming-Montreal Global Biodiversity Framework in December 2022, with target 2 aiming to ensure that at least 30% of degraded ecosystems are under effective restoration by 2030. More recently, in December 2023, the Australian Parliament introduced the Nature Repair Act, which establishes a framework for the world’s first legislated, national, voluntary biodiversity market. How can the effectiveness of these ambitious targets be measured? Natural Capital Accounting (NCA) provides a framework to measure changes in ecosystem condition that is applicable across ecosystems and potentially catalogue effects of restoration interventions to drive investment, improvement to practice, and ultimately, to better protect the Earth's ecosystems. However, the framework has not been tested in this context. In this progressive approach, we populated the leading global NCA framework with ecological data to quantify changes in ecosystem condition after restoration. In principle, NCA is fit for purpose, however, methodological refinements and ecological expertise are needed to unlock its full potential. These tweaks will facilitate adoption and standardisation of reporting as efforts ramp up to meet ambitious global restoration targets.

The functional diversity-productivity relationship of woody plants is climatically sensitive.

Plot-scale experiments indicate that functional diversity (FD) plays a pivotal role in sustaining ecosystem functions such as net primary productivity (NPP). However, the relationships between functional diversity and NPP across larger scale under varying climatic conditions are sparsely studied, despite its significance for understanding forest-atmosphere interactions and informing policy development. Hence, we examine the relationships of community-weighted mean (CWM) and functional dispersion (FDis) of woody plant traits on NPP across China and if such relationships are modulated by climatic conditions at the national scale. Using comprehensive datasets of distribution, functional traits, and productivity for 9120 Chinese woody plant species, we evaluated the distribution pattern of community-weighted mean and functional dispersion (including three orthogonal trait indicators: plant size, leaf morphology, and flower duration) and its relationships with NPP. Finally, we tested the effects of climatic conditions on community-weighted mean/functional dispersion-NPP relationships. We first found overall functional diversity-NPP relationships, but also that the magnitude of these relationships was sensitive to climate, with plant size community-weighted mean promoting NPP in warm regions and plant size functional dispersion promoting NPP in wet regions. Second, warm and wet conditions indirectly increased NPP by its positive effects on community-weighted mean or functional dispersion, particularly through mean plant size and leaf morphology. Our study provides comprehensive evidence for the relationships between functional diversity and NPP under varying climates at a large scale. Importantly, our results indicate a broadening significance of multidimensional plant functional traits for woody vegetation NPP in response to rising temperatures and wetter climates. Restoration, reforestation actions and natural capital accounting need to carefully consider not only community-weighted mean and functional dispersion but also their interactions with climate, to predict how functional diversity may promote ecosystem functioning under future climatic conditions.

Leveraging natural capital accounting to support businesses with nature-related risk assessments and disclosures.

Nature loss threatens businesses, the global economy and financial stability. Understanding and addressing these risks for business will require credible measurement approaches and data. This paper explores how natural capital accounting (NCA) can support business data and information needs related to nature, including disclosures aligned with the Taskforce on Nature-related Financial Disclosures recommendations. As businesses seek to measure, manage and disclose their nature-related risks and opportunities, they will need well-organized, consistent and high-quality information regarding their dependencies and impacts on nature, which few businesses currently collect or track in-house. NCA may be useful for these purposes but has not been widely used or applied by businesses. National NCA guided by the U.N. System of Environmental-Economic Accounting may provide: (i) a useful framework for businesses in conceptualizing, organizing and managing nature-related data and statistics; and (ii) data and information that can directly support business disclosures, corporate NCA and other business applications. This paper explores these opportunities as well as synergies between national and corporate natural capital accounts. In addition, the paper discusses key barriers to advancing the wider use and benefits of NCA for business, including: awareness of NCA, data access, business capabilities related to NCA, spatial and temporal scales of data, audit and assurance considerations, potential risks, and costs and incentives. This article is part of the theme issue 'Bringing nature into decision-making'.

Study on the Ecological Compensation Standard in the Xinjiang Uygur Autonomous Region of China under the Perspective of Natural Capital Supply and Demand

The fundamental component of the ecological compensation system, as well as the crucial basis for its efficient functioning, is calculating the ecological compensation amount and establishing the ecological compensation standard. This study integrates the ecological footprint with natural capital monetization and other methods by introducing a natural capital accounting system. From the standpoint of natural capital supply and demand, it also builds an accounting framework for ecological compensation standards that is standardized, dynamic, and regionally differentiated while taking local socioeconomic aspects into account. We determined the amount of ecological compensation by using Xinjiang as the research object and calculating and analyzing the features of regional and temporal changes in the monetary and physical quantities of natural capital in Xinjiang from 2010 to 2020. The findings show that from 2010 to 2020, Xinjiang’s ecological footprint increased by 1.26 times in physical terms and 1.21 times in monetary terms and that its ecological carrying capacity increased by 4.13% in physical terms and 9.42% in monetary terms. The ecological deficit continues to grow in physical and monetary terms, with a per capita ecological deficit in 2020 of 19.92 s-nha/cap and 70,100 CNY/cap in physical and monetary terms, respectively. The amount of ecological compensation required to be paid in Xinjiang increased from CNY 5659 million to CNY 10,259 million, and the per capita ecological compensation payment standard increased from 259.42 CNY/cap/yr to 396.11 CNY/cap/yr. In summary, Xinjiang’s natural capital supply is insufficient to meet the demand for consumption, and the ecological deficit is growing with time, necessitating the payment of ecological compensation. The study’s results lay the foundation for formulating and implementing ecological compensation policies in Xinjiang and provide theoretical support for constructing ecological civilization in Xinjiang. In addition, the ecological compensation accounting framework constructed in this study organically integrates natural capital theory, ecosystem services, and socioeconomic influencing factors, which enriches the methodology of accounting for ecological compensation standards, and, at the same time, can be used as a paradigm of a dynamic and equitable ecological compensation accounting framework to further promote its use at different scales and regions.

Natural capital accounting for sustainability: Bibliometric analysis and explainable artificial intelligence modeling for citation counts

Natural capital accounting plays a pivotal role in the sustainable management and conservation of natural resources. This paper aims to contribute to this field by conducting a bibliometric review of 1409 articles and employing explainable artificial intelligence modeling (XAI) to identify and predict the factors that influence the impact of natural capital accounting (NCA) research, especially in terms of citations to this research. The findings revealed that the Journal of Cleaner Production is the leading publication in this field, with the highest h-index of 37. The XAI found that age of publication and number of references significantly impacted the likelihood of a paper receiving many citations. This study offers an innovative and practical framework for forecasting citation counts and provides effective strategies for authors and editors to enhance the citation impact of their work.

Natural Capital Accounting and Profitability of Listed Manufacturing Firms in Nigeria

This study examines the impact of natural capital accounting on profitability of listed manufacturing firms in Nigeria and it adopts correlational research design. The population of the study consists of sixty-four manufacturing firms listed on the Nigerian Exchange Group (NGX) for thirteen years between 2010- 2022. The study used the purposive sampling method, to obtain a sample of forty-nine manufacturing firms that meet the criteria. Return on Asset (ROA) is considered as proxy of profitability while natural capital accounting index (scores) were generated using 7 items in line with International Initiative on Integrated Reporting Council (IIRC). Data for the study was extracted from the annual reports and accounts of the sampled firms for the period under study, and analyzed using multiple regressions. The result revealed that natural capital accounting has significant and positive effect on return on asset (ROA). Based on these findings, this study therefore, concludes that natural capital accounting influence profitability of listed manufacturing firms in Nigeria. This study recommends among others that, listed Nigerian manufacturing firms should emphasize more on reporting their natural capital accounting as it is capable of improving their profitability. This can be achieved through proper and accurate reporting of their environmental information, because it affects profitability significantly. Also, in line with global best practices, regulatory agencies in Nigeria should issue reporting standards that would make reporting of all sustainable capital items and particularly environment/natural capital accounting mandatory.

Organic carbon accumulation in British saltmarshes

Saltmarshes are a crucial component of the coastal carbon (C) system and provide a natural climate regulation service through the accumulation and long-term storage of organic carbon (OC) in their soils. These coastal ecosystems are under growing pressure from a changing climate and increasing anthropogenic disturbance. To manage and protect these ecosystems for C and to allow their inclusion in emissions and natural-capital accounting, as well as carbon markets, accurate and reliable estimates of OC accumulation are required. However, globally, such data are rare or of varying quality. Here, we quantify sedimentation rates and OC densities for 21 saltmarshes in Great Britain (GB). We estimate that, on average, saltmarshes accumulate OC at a rate of 110.88 ± 43.12 g C m−2 yr−1. This is considerably less than widely applied global saltmarsh averages. It is therefore highly likely that the contribution of northern European saltmarshes to global saltmarsh OC accumulation has been significantly overestimated. Taking account of the climatic, geomorphological, oceanographic, and ecological characteristics of all GB saltmarshes and the areal extent of different saltmarsh zones, we estimate that the 451.65 km2 of GB saltmarsh accumulates 46,563 ± 4353 t of OC annually. These low OC accumulation rates underline the importance of the 5.20 ± 0.65 million tonnes of OC already stored in these vulnerable coastal ecosystems. Going forward the protection and preservation of the existing stores of OC in GB saltmarshes must be a priority for the UK as this will provide climate benefits through avoided emissions several times more significant than the annual accumulation of OC in these ecosystems.

Diversionary Post-Coal Politics in South Africa: A Chinese Solar-Powered Industrial Zone Controversy

In September 2021 at a United Nations climate summit in New York, Xi Jinping announced that there would be no further Chinese coal-fired power plants along the Belt and Road Initiative, which stretches as far as South Africa. Instead, the Chinese operator of South Africa’s single largest Special Economic Zone proposal – in rural Makhado – and his local allies suggested that solar power could supply energy for the $10 billion project, including high-emissions industrial projects. This raised the question of whether firms engaged in mining, smelting, processing and other carbon-intensive activities would pick ‘low-hanging fruits’ within the renewable energy sector (instead of that power going into the grid for broader consumption). Their incentive is to do so, in order to safeguard the so-called Minerals-Energy Complex from Western climate sanctions – threatened, on grounds of high CO2-inputs to export products including steel, aluminium and petrochemicals. In spite of a 2022 United Nations Development Programme endorsement of the project, social and environmental resistance has intensified, but the introduction of solar power for high-emissions metal manufacturing presents a special challenge. Two techniques associated with ecological modernisation – natural capital accounting and the Social Cost of Carbon – may prove relevant to civil society critics of ‘extractivism’, in shifting the narrative further across space, time and scale.

Quantifying mangrove carbon assimilation rates using UAV imagery

Mangrove forests are recognized as one of the most effective ecosystems for storing carbon. In drylands, mangroves operate at the extremes of environmental gradients and, in many instances, offer one of the few opportunities for vegetation-based sequestering of carbon. Developing accurate and reproducible methods to map carbon assimilation in mangroves not only serves to inform efforts related to natural capital accounting, but can help to motivate their protection and preservation. Remote sensing offers a means to retrieve numerous vegetation traits, many of which can be related to plant biophysical or biochemical responses. The leaf area index (LAI) is routinely employed as a biophysical indicator of health and condition. Here, we apply a linear regression model to UAV-derived multispectral data to retrieve LAI across three mangrove sites located along the coastline of the Red Sea, with estimates producing an R2 of 0.72 when compared against ground-sampled LiCOR LAI-2200C LAI data. To explore the potential of monitoring carbon assimilation within these mangrove stands, the UAV-derived LAI estimates were combined with field-measured net photosynthesis rates from a LiCOR 6400/XT, providing a first estimate of carbon assimilation in dryland mangrove systems of approximately 3000 ton C km−2 yr−1. Overall, these results advance our understanding of carbon assimilation in dryland mangroves and provide a mechanism to quantify the carbon mitigation potential of mangrove reforestation efforts.

Mapping Research on Natural Capital Accounting: A Strategic Challenge for Multinational Firms

In the contemporary context, characterized by the paramount importance of sustainability, both governments and companies, particularly multinational enterprises (MNEs), play an important role in fostering and overseeing the transformative processes necessary to establish a robust accounting framework for natural capital. The objective of this paper is twofold: firstly, to conduct a comprehensive review of the existing body of literature on this subject and to highlight the importance of avoiding intangible liabilities in MNE from bad practices based on Natural Capital bad practices, and secondly, to outline prospective directions for further research in this domain. To achieve these objectives, we pose two fundamental research questions: (1) What is the current state of knowledge regarding the intangible liabilities and accounting practices of MNEs concerning Natural Capital? (2) How can future research in the field of Natural Capital Accounting be oriented to assist MNEs in accounting for their interactions with Natural Capital? A mixed-method approach is used to address these inquiries. Initially, we substantiate the intrinsic connection between MNEs and the natural environment, utilizing bibliometric techniques to identify the primary themes and areas of focus in the realm of natural capital accounting. Subsequently, we employ in-depth analysis and logical reasoning to propose potential avenues for future research. Additionally, we present a comprehensive model designed to guide forthcoming research endeavors in the domain of natural capital accounting. Among the salient findings derived from our model analysis, it is evident that the inclusion of other environmental factors, such as ecosystem services and biodiversity, should be integral to the overall framework of natural capital accounting. Furthermore, the incorporation of such accounting practices into the day-to-day operations of companies is essential to preserving the natural capital and the reputation of the firms.

Natural capital accounting of land resources based on ecological footprint and ecosystem services value

Land resources are the material basis for human survival and development. Rapid economic development in the past has resulted in the over-utilization of land, and the undervaluation of land in market transactions has further exacerbated the loss of land benefits. This calls for monitoring the quantity and quality of land and reversing the undervaluation of land to reduce the waste of land resources. Based on this, a scientific natural capital accounting system of land resources should be established to understand the quantity and value of land resources in time. In order to provide a comprehensive evaluation of land utilization, this paper introduces the idea of compiling the land resources balance sheet. First, the physical quantity of land is calculated through the ecological footprint method improved by net primary productivity. Second, the value quantity of land is calculated through the equivalent factor method which is improved by the biologically productive land area obtained above, and then using ArcGIS to further demonstrate spatial and temporal changes in land resources. Taking the relevant data of Chongqing from 2000 to 2020 as an example, the land status is comprehensively evaluated from multiple perspectives, including quantity, value and spatial distribution. The results show that: (1) Under the dual impact of changes in the physical quantity and the unit price of land, the value quantity of land assets and equity in Chongqing realized 5.9 times and 5.1 times growth respectively during the study period. (2) Grassland was the most productive land type in Chongqing. Over a long time period, Chongqing prioritized the development of animal husbandry, placing too much emphasis on the production function of grassland and neglecting ecological protection, which was caused by an imbalance in the pasture area. In 2020, grassland utilization exceeded 40.9 % of the carrying capacity. (3) The value quantity of land in Chongqing existed in a spatial distribution pattern that was high in the southeast and northeast and low in the center and west, and there was a great imbalance in its growth rate among regions. The research results are helpful to the rational utilization and standardized transaction of land resources in Chongqing, and provide references for the inclusion of land resources in the management of state-owned assets.

Forest carbon removal potential and sustainable development in Japan

Forests play a crucial role in mitigating climate change and reducing emissions as a major carbon sink. However, its value in removing carbon dioxide (CO2) from the atmosphere is always underestimated in natural capital (NC) accounting and sustainability assessments. This study predicted Japan’s forest CO2 removal by afforestation and forest management and its monetary value until 2042 from national to gridded level, with statistical data and complementary satellite data products, and explored how that CO2 removal will contribute to sustainable development under the inclusive wealth (IW) framework. The results show that: (1) the annual CO2 removal by forests has the potential to offset 15.3% of the emission and increase NC by 6.8% in Japan, significantly contributing to carbon neutrality and IW growth; (2) the total CO2 removal in exiting forests will peak at around 2030 and then decrease, but expanding afforestation could offset that decrease in later years; (3) the spatial distribution patterns of IW and forest CO2 removal are opposite. This indicates a national carbon trading market could create new wealth for rural communities where vast forests exist, and then effectively balance the inequal urban–rural development in Japan. The explicit spatial information of this study could provide valuable information for differentiating policy priorities of forestry planning and sustainable development in different local communities.

Ecosystem accounting for water resources at the catchment scale, a case study for the Peloponnisos, Greece

The System of Environmental-Economic Accounts - Ecosystem Accounting (SEEA EA) has become the world’s leading natural capital accounting system. It provides a valuable decision-making tool for spatial planning and integrated development. SEEA implementation is a current key challenge for European Union (EU) Member States (MS), mainly due to high requirements on budget, technical capacity, and data, varying between countries. Within this frame, the objective of this paper is to demonstrate how the SEEA framework can be applied to analyse water ecosystems at river basin scale, building exclusively upon the officially registered, standardized national and EU datasets. We test how water resources can be accounted for using SEEA EA, with an additional component assessing water use based on SEEA Water. Within the EU Water Framework Directive (WFD), two reporting cycles of river basin management plans have been completed for water ecosystems, providing spatial and temporal datasets. This material together with numerous data available at EU and national levels, water-relevant databases and repositories, resulting from MS reporting obligations, are tested and utilised for water accounting. The Alfeios river basin in Western Peloponnisos Greece serves as the case study area for compiling extent accounts, condition accounts, and supply and use accounts for provisioning water ecosystem services (drinking and irrigation water) for the periods 2009–2015 and 2015–2021 (the two WFD reporting cycles). It is demonstrated that readily available EU datasets can support the initial mapping and compiling of water ecosystem accounts at local scale, as applied in Greece, and therefore potentially also in other EU countries with fragmented data scattered in various administrative services and authorities with overlapping responsibilities on water resources. It is also concluded that future WFD reporting cycles and revisions of the river basin management plans could be better structured to enable a more direct connection of the collected data to ecosystem accounts.