Definition and classification of Definition and classification of assets in the revised SEEAassets in the revised SEEA

Alessandra Alfieri and Ivo HavingaAlessandra Alfieri and Ivo Havinga

UNSDUNSD

What is the SEEA?What is the SEEA?

• Satellite system of the SNA?Satellite system of the SNA?• System in its own right?System in its own right?• What sets the SNA apart from the SEEA?What sets the SNA apart from the SEEA?• Is the SEEA a simple extension of the SNA that Is the SEEA a simple extension of the SNA that

expands its asset boundary and flow account?expands its asset boundary and flow account?• Is the SEEA a system approach to the environment Is the SEEA a system approach to the environment

providing information on the state and quality of providing information on the state and quality of the ecosystems and their ability of providing the ecosystems and their ability of providing services?services?

Asset accounts in the SEEAAsset accounts in the SEEA

• Describe the state of the environmentDescribe the state of the environment• Stocks and changes in stocks – quantity and Stocks and changes in stocks – quantity and

quality quality • Include produced and non-produced assets Include produced and non-produced assets

(natural capital)(natural capital)• Closer to the information system of the scientific Closer to the information system of the scientific

communitycommunity• Strength of the SEEA is to bring together science Strength of the SEEA is to bring together science

and economics and economics

Economy

Evapo-transpiration

Other Industries(incl. Agriculture)

Imports

Abstraction

Sea

Atmosphere

Collection of precipitation

HouseholdsAb

stra

ctio

n

Water collection, treatment and supply

Inland Water Resource

Surface water(reservoirs, lakes, rivers, snow, ice and glaciers)

Soil water

Groundwater

upstream basins and

aquifers outside

the territory of reference

Natural transfers (e.g. infiltration, seepage, etc.)

Sea

Inflows

downstream basins and

aquifers outside

the territory of reference

Prec

ipita

tion

Evap

o-tra

nspi

ratio

n

Sewerage

Rest of the World Economy Rest of

the World Economy

Ret

urns

Ret

urns

Territory of Reference

Exports

Ret

urns

Ret

urns

Two systemsTwo systems

Economy

Environment/Ecosystems

Fixed assets Inventories (excluding cultivated biological resources) ValuablesFinancial assets

Cultivated biological resourcesNatural resources Land Water resources Uncultivated biological resources Soil resources Mineral and energy resources

Quality and health of ecosystems

Impact

Resource

Implications on the classification Implications on the classification structurestructure

Economy Environment Cultivated biological resources Ecosystems Timber resources Terrestrial Natural resources Forest Land Forest land Forest land Timber resources (from cultivated and uncultivated

forests) Uncultivated biological resources Other services Timber resources Ecosystems Forest Other services

No change in coverageNo change in coverage

Definition of assetDefinition of asset

• 2008 SNA2008 SNA

An asset is a store of value representing a An asset is a store of value representing a benefit or series of benefits accruing to the benefit or series of benefits accruing to the economic owner by holding or using the economic owner by holding or using the entity over a period of time. It is a means of entity over a period of time. It is a means of transferring value from one accounting transferring value from one accounting period to another.period to another. (2008 SNA, para 3.30). (2008 SNA, para 3.30).

Definition of asset - ContinuedDefinition of asset - Continued

• SEEA-2003 SEEA-2003

Defined in terms of the provision of Defined in terms of the provision of environmental functionsenvironmental functions which provide use which provide use and non-use benefitsand non-use benefits

• Revised SEEA - proposalRevised SEEA - proposal

An asset is a store of value representing a benefit An asset is a store of value representing a benefit or series of benefits accruing to the owner.or series of benefits accruing to the owner.

• Value: capacity of the ecosystem of providing Value: capacity of the ecosystem of providing servicesservices

• Benefits: rewards for providing services – use and Benefits: rewards for providing services – use and non-use benefitsnon-use benefits

• Owner: could be global owner (atmosphere, Owner: could be global owner (atmosphere, oceans)oceans)

Definition of asset - ContinuedDefinition of asset - Continued

From 1993 SNA to 2008 SNAFrom 1993 SNA to 2008 SNA- Changes in the asset classification- Changes in the asset classification

• “ “Tangible non-produced asset” replaced with “natural Tangible non-produced asset” replaced with “natural resources”resources”

• ““Intangible non produced assets” split into Intangible non produced assets” split into “Contract “Contract leases and licenses”leases and licenses” and “Goodwill and marketing assets” and “Goodwill and marketing assets”

• Land improvementLand improvement• Cost of ownership transfers on land recorded as land Cost of ownership transfers on land recorded as land

improvementsimprovements• Cost of ownership transfers on non-produced assets other Cost of ownership transfers on non-produced assets other

than land added to the value of non-produced assetthan land added to the value of non-produced asset• ““Mineral exploration” replaced with “Mineral exploration Mineral exploration” replaced with “Mineral exploration

and evaluation”and evaluation”

Land and natural resourcesLand and natural resources

• 2008 SNA2008 SNA

Natural resources consist of naturally Natural resources consist of naturally occurring assets such as land, water occurring assets such as land, water resources, uncultivated forests and deposits resources, uncultivated forests and deposits of minerals that have an economic valueof minerals that have an economic value

• SEEA-2003SEEA-2003• Natural resource assets are defined as those elements of the Natural resource assets are defined as those elements of the

environment that provide use used in economic activity (or that environment that provide use used in economic activity (or that may provide such benefits one day) and that are subject primarily may provide such benefits one day) and that are subject primarily to quantitative depletion through human use. They are sub-to quantitative depletion through human use. They are sub-divided into four categories: mineral and energy resources, soil divided into four categories: mineral and energy resources, soil resources, water resources and biological resources. resources, water resources and biological resources.

• Land and surface water assets are defined as the areas within the Land and surface water assets are defined as the areas within the national territory that provide direct or indirect use benefits (or national territory that provide direct or indirect use benefits (or that may provide such benefits one day) through the provision of that may provide such benefits one day) through the provision of space for economic and non-economic (for example recreational) space for economic and non-economic (for example recreational) human activitieshuman activities

Land and natural resourcesLand and natural resources

Land and natural resourcesLand and natural resources2003 SNA2003 SNA SEEA 2003SEEA 2003

Land part of natural Land part of natural resourcesresources

Land at the higher level – Land at the higher level – not as part of natural not as part of natural resourcesresources

Natural resources – only Natural resources – only naturally occurring assets naturally occurring assets (excludes cultivated (excludes cultivated assets, part of produced assets, part of produced assets)assets)

All materials that are All materials that are results of production or results of production or natural process (includes natural process (includes cultivated assets )cultivated assets )

Difference in the hierarchyDifference in the hierarchy

Land and natural resourcesLand and natural resources

• Should the consistency with the SNA be Should the consistency with the SNA be maintained? If yes, maintained? If yes,

Natural resources consist of naturally occurring Natural resources consist of naturally occurring assets such as land, mineral and energy assets such as land, mineral and energy resources, soil resources, water resources and resources, soil resources, water resources and uncultivated biological resources that can be uncultivated biological resources that can be primarily used for economic activities now or in primarily used for economic activities now or in the future by the ownerthe future by the owner

Land and soilLand and soil

• Breakdown of land to follow the land classification Breakdown of land to follow the land classification • land cover or land use? What level of disaggregation?land cover or land use? What level of disaggregation?

• SNA 2008 – soil is included with landSNA 2008 – soil is included with land• SEEA-2003 – soil separate resourceSEEA-2003 – soil separate resource

Should soil be maintained as a separate item in the Should soil be maintained as a separate item in the classification of natural resources (Volume 1)?classification of natural resources (Volume 1)?

Should soil appear in the classification of ecosystem assets Should soil appear in the classification of ecosystem assets (Volume 2)?(Volume 2)?

Mineral and energy resourcesMineral and energy resources• SNA 2008SNA 2008

Mineral and energy resources consist of mineral and energy reserves Mineral and energy resources consist of mineral and energy reserves located on or below the earth’s surface that are economically located on or below the earth’s surface that are economically exploitable, given current technology and relative pricesexploitable, given current technology and relative prices

• SEEA-2003SEEA-2003Mineral and energy resources include subsoil deposits of fossil fuels, Mineral and energy resources include subsoil deposits of fossil fuels, metallic minerals and non-metallic mineralsmetallic minerals and non-metallic minerals

• Revised SEEA- proposalRevised SEEA- proposalMineral and energy resources include known deposits of mineral Mineral and energy resources include known deposits of mineral and energy resources such as petroleum resources, non-metallic and energy resources such as petroleum resources, non-metallic minerals and metallic minerals that can be primarily used for minerals and metallic minerals that can be primarily used for economic activity no or in the future by the owner.economic activity no or in the future by the owner.

Classification of mineral and Classification of mineral and energy resourcesenergy resources

EA.1 Natural resources

EA.1 Mineral and energy resources

EA.111 Petroleum resources

EA.111.1

Natural gas (including NGL and condensate)

EA.111.2

Crude Oil

EA.111.3

Natural bitumen, extra heavy oil, shale oil , sand oil and others n.e.c.

EA.112 Non-metallic minerals and solid fossil energy resources

EA.112.1

Non-metallic minerals except for coal and peat

EA.112.2

Coal

EA.112.3

Peat EA.113 Metallic minerals

EA.113.1 Uranium ores

EA.113.2 Other metallic minerals

Biological resourcesBiological resources

• 2008 SNA2008 SNANon-cultivated biological resources consist of animals, Non-cultivated biological resources consist of animals, birds, fish and plants that yield both once-only and repeat birds, fish and plants that yield both once-only and repeat products over which ownership rights are enforced but for products over which ownership rights are enforced but for which natural growth and regeneration is not under the which natural growth and regeneration is not under the direct control, responsibility and management of direct control, responsibility and management of institutional unitsinstitutional units

• SEEA-2003SEEA-2003Non-cultivated biological resources consist of animals, Non-cultivated biological resources consist of animals, birds, fish and plants that yield both once-only and repeat birds, fish and plants that yield both once-only and repeat products that can be primarily used for economic activity products that can be primarily used for economic activity now or in the future by the ownernow or in the future by the owner

Water resourcesWater resources• 2008 SNA2008 SNA

Water resources consist of surface and groundwater resources used Water resources consist of surface and groundwater resources used for extraction to the extent that their scarcity leads to the enforcement for extraction to the extent that their scarcity leads to the enforcement of ownership or use rights, market valuation and some measure of of ownership or use rights, market valuation and some measure of economic controleconomic control

• SEEA-WaterSEEA-WaterWater resource assets are defined as water found in fresh and Water resource assets are defined as water found in fresh and brackish surface and groundwater bodies within the national territory brackish surface and groundwater bodies within the national territory that provide direct use benefits, now or in the future (option benefits), that provide direct use benefits, now or in the future (option benefits), through the provision of raw material, and may be subject to through the provision of raw material, and may be subject to quantitative depletion through human usequantitative depletion through human use

• Revised SEEARevised SEEAWater resource assets are defined as water found in fresh and Water resource assets are defined as water found in fresh and brackish surface and groundwater bodies brackish surface and groundwater bodies that can be primarily used that can be primarily used for economic activity now or in the future by the ownerfor economic activity now or in the future by the owner

Water resources - classificationWater resources - classification

EA.13 Water Resources EA.13 Water Resources

EA.131 Surface waterEA.131 Surface water

EA.1311 Artificial reservoirsEA.1311 Artificial reservoirs

EA.1312 LakesEA.1312 Lakes

EA.1313 Rivers and streamsEA.1313 Rivers and streams

EA.1314 Glaciers, snow and iceEA.1314 Glaciers, snow and ice

EA.132 GroundwaterEA.132 Groundwater

EA.133 Soil waterEA.133 Soil water

Questions to the LG?Questions to the LG?

Q1:Do you agree that the classification of assets presented in Volume 1 Q1:Do you agree that the classification of assets presented in Volume 1 should structure the classification in line with the 2008 SNA asset should structure the classification in line with the 2008 SNA asset classification?classification?

Q2:Do you agree with the proposed definition of asset in the revised Q2:Do you agree with the proposed definition of asset in the revised SEEA?SEEA?Q3:Do you agree with the explanation of what is intended with value Q3:Do you agree with the explanation of what is intended with value

and benefits?and benefits?Q4:Do you agree that the revised SEEA asset classification should align Q4:Do you agree that the revised SEEA asset classification should align

with the changes in the 2008 SNA?with the changes in the 2008 SNA?Q5:Is there a need to rectify the asymmetry in recording the costs of Q5:Is there a need to rectify the asymmetry in recording the costs of

ownership transfer on non-produced assets other than land as part ownership transfer on non-produced assets other than land as part of produced assets and thus diverging from the SNA? of produced assets and thus diverging from the SNA?

Q6:Do you agree with including land as part of natural Q6:Do you agree with including land as part of natural resources (with a changed definition)?resources (with a changed definition)?

Q7:What is your opinion in maintaining the distinction Q7:What is your opinion in maintaining the distinction between produced and non-produced assets in the between produced and non-produced assets in the presentation of the asset classification, that is maintaining presentation of the asset classification, that is maintaining the hierarchy of the classification as in the 2008 SNA?the hierarchy of the classification as in the 2008 SNA?

Q8:Do you agree with the proposed definition of natural Q8:Do you agree with the proposed definition of natural resources? resources?

Q9:Do you agree to revisit the definition and breakdown of Q9:Do you agree to revisit the definition and breakdown of the land classification to ensure it is aligned with the the land classification to ensure it is aligned with the SEEA classification of assets?SEEA classification of assets?

Questions to the LG?Questions to the LG?

Q10Q10 Should soil be maintained as a separate item in the Should soil be maintained as a separate item in the asset classification (Volume 1) or should it combined with asset classification (Volume 1) or should it combined with land? Should it appear as part of the ecosystem land? Should it appear as part of the ecosystem classification?classification?

Q11:Q11: If soil is combined with land, will it appear If soil is combined with land, will it appear explicitly as an item in the classification or only included explicitly as an item in the classification or only included in the definition?in the definition?

Q12:Q12: Do you agree with the proposed definition of Do you agree with the proposed definition of mineral and energy resources?mineral and energy resources?

Q13:Q13: Do you agree with the proposed breakdown of the Do you agree with the proposed breakdown of the classification of mineral and energy resources in the classification of mineral and energy resources in the SEEA-Energy (Table 3)?SEEA-Energy (Table 3)?

Questions to the LG?Questions to the LG?

Q14:Q14: Do you agree with the proposed Do you agree with the proposed definition of non-cultivated biological definition of non-cultivated biological resources?resources?

Q15:Q15: Do you agree with the proposed Do you agree with the proposed definition of water resources assets?definition of water resources assets?

Q16:Q16: Do you agree with aligning the Do you agree with aligning the revised SEEA with the SEEA-Water asset revised SEEA with the SEEA-Water asset classification?classification?

Questions to the LG?Questions to the LG?