4. Compiling accounts from relevant data

• 4.2 Developing a spatial database
  • 4.2.1 Key data sources
  • 4.2.2 Components of a spatial database
• 4.3 Assessing extent and condition of ocean assets
  • 4.3.1 Key data sources
  • 4.3.2 Ocean asset classification
  • 4.3.3 Key condition variables
• 4.4 Assessing supply and use of ocean services/inputs to the economy
  • 4.4.1 Key data sources
• 4.5 Assessing pollutants (flows to the environment)
  • 4.5.1 Key data sources
• 4.6 Assessing the ocean economy
  • 4.6.1 Measures of economic activity
  • 4.6.2 Ocean-related employment
  • 4.6.3 Key data sources
• 4.7 Assessing ocean governance
  • 4.7.1 Key data sources
• 4.8 Compiling summary indicators
• 4.8 Summary of current rediness level for different account types
  • Environmental accounting
  • Social accounting
  • Economic accounting
  • Governance accounting

4.2 Developing a spatial database

Ocean accounts can be built from maps (spatially explicit) or tables (spatially independent), but the power is in combining them. Maps can be used to generate tables and data in tables can be allocated to areas of the ocean.

Establishing the spatial database for Ocean Accounts is an important early step that will facilitate the integration of spatial data from many sources. If the data sources already adhere to the standards of a National Spatial Data Infrastructure (NSDI) that includes coastal and marine areas (or Marine Spatial Data Infrastructure, MSDI), then spatial standards will not have to be developed specifically for the pilot. If not, then an ocean accounting pilot may be the catalyst to expand an existing NSDI to the country’s EEZ.

Many pilots have begun by compiling maps as a basis for a physical ocean asset extent account (see Environmental asset accounts). If there is no NSDI/MSDI, then standards such as shoreline vector, definition of “coastal,” projections, and scales will need to be established. It is possible to generate initial analytical results by overlaying spatial data in a GIS without creating an integrated spatial data infrastructure. However, this does not facilitate the production of the accounting tables. To produce a physical Ocean Asset Extent Account (Table 1), it is best to first align data (e.g., separate maps of mangroves, coral, seagrasses, etc.) using the same shoreline and spatial units. Doing this will ensure validation of the data by revealing gaps and overlaps.

Although the Ocean Accounts Framework suggests spatial units and ecosystem classifications, pilot physical Ocean Asset Extent Accounts typically begin with existing national spatial units and ecosystem classifications.

Including terrestrial and freshwater areas in the spatial database will facilitate the delineation of coastal and other transitional ecosystems. It will also facilitate the estimation of land-based sources of pollution to compile tables on land-based sources of marine pollution (see Assessing pollutants (flows to the environment)).

4.2.1 Key data sources

National agencies responsible for mapping and satellite imagery may have already established an NSDI (or “One map”) that includes the ocean. However, information on bathymetry may be held by other agencies, such as fisheries or scientific research agencies. Relevant data may also be available from global sources. For example, the USGS/ESRI Global Shoreline Vector and the General Bathymetric Chart of the Oceans (GEBCO) are both recommended for testing.

4.2.2 Components of a spatial database

Basic elements of the spatial data infrastructure include shoreline, bathymetry, and the designation of spatial units (i.e., MBSUs based on a grid or other spatial framework), definition of “coastal,” map projection, and scale. These then are used to create an initial spatial database (in a GIS) upon which other data are overlaid or estimated.

Figure 10. Example of establishing MBSUs using bathymetry

MBSUs may be a uniform grid of 1km cells (hexagons or squares) as shown in the Canada pilot, or a more detailed definition based on bathymetry. For example, the Malaysia pilot has tested MBSUs based on the continental shelf or a specific depth.

Some data sources are based on a standard shoreline, others will have used different shorelines. Aligning these to a standard vector is essential.

The ESCAP pilot for Viet Nam integrated UNEP-WCMC’s data on coral reefs and seagrasses with local data on mangroves, ports, and protected areas to assess changes in mangroves, coral, and seagrasses with respect to port development, MPAs, and shipping routes.

A basic spatial database would include:

• Shoreline vector
• Bathymetry
• Basic Spatial Units (BSUs) as defined in the Ocean Accounts Framework
• Ecosystem types (ETs) such as mangroves, coral reefs, seagrasses
• Designated use areas (MPAs, fishing areas, etc.)
• Human use (ports, tourism areas, etc.)

Having a plan for NSDI/MSDI development, institutional infrastructure, and resources in place for update and maintenance will help ensure its longevity and sustainability. Integration of various spatial data sources would also highlight gaps and mismatches that would improve the usability of the source data.

4.3 Assessing extent and condition of ocean assets

Ocean assets encompass not only the living (biotic) components (mangroves, seagrasses, coral reefs), but also the non-living (abiotic) (beaches, rocky shores, minerals, energy), their landform (slope, depth), as well as their designated use (marine protected area, fishing area). Not many countries will have all this information available in spatial detail and in one spatial dataset. However, compiling what data are available nationally will support many analyses of policy interest, including marine spatial planning (MSP). For example, is the extent of mangroves declining? Where are the coral reefs that are at most risk from tourist impacts? Will allowing deep-sea mining impact any unique ecosystems?

Furthermore, understanding the condition of those assets will support the assessment of their capacity to provide ocean services. Condition measures generally refer to quality measures (concentrations of BOD, plastics, pH, and temperature), but also to broader measures such as species diversity, ecosystem diversity, and “health” of fish stocks. It is highly recommended that measures of condition be compared to a reference condition. For example, BOD concentrations in the study area may be 15mg/l whereas in unpolluted seawater, they are less than 5mg/l. The condition indicator would show that current concentrations are three times higher than unpolluted water.

Linked with the ecosystem extent maps, the assessment of condition will help identify degraded ecosystem assets that would benefit from rehabilitation and pristine ones that would benefit from protection. Compiling data on ocean asset extent and condition would contribute data to Tables 1, 2, and 3.

As described in Monetary Asset Accounts, monetary values can be attributed to some assets by calculating the Net Present Value (NPV) of the future flows of services. This is discussed at length in Chapter V of the SEEA-CF and further guidance on compilation is not provided here. If developing Monetary Asset Accounts is to be attempted as part of a pilot study, it would require reliable measures of service values (See Assessing supply and use of ocean services/inputs to the economy) and agreed scenarios of future flows of those services.

4.3.1 Key data sources

Initial ocean asset extent accounts will begin with national publicly available data and data that stakeholders agree to share. Ideally, this would begin with “official” and agreed (among stakeholders) data on locations of assets of interest and information on their condition. One or more departments (fisheries, environment, mining, energy, natural resources) responsible for aspects of the ocean may have spatial or tabular information that would benefit from consolidation into a “one map” for the ocean.

Initial scoping of ocean asset extent accounts should also consider relevant local studies conducted by regional or international organizations, NGOs, or academic researchers. In the absence of local data, global spatial portals may provide a useful starting point. However, global data sources should be used with caution for national analyses, since they may be based on generalizations, interpretations, or estimates that may not coincide with local conditions.

4.3.2 Ocean asset classification

The Ocean Accounts Framework integrates ecosystems (SEEA-EEA) with “individual environmental assets” (SEEA-CF), recognizing that there are overlaps. The overlaps are more of a concern when monetary valuation is conducted, since the value of a seagrass bed would include the value of the commercial fish stocks living in it.

Although this Guidance recommends the IUCN Global Ecosystem Typology as a reference classification for ecosystems, most countries will begin with existing ecosystem types that are of concern and have been studied. National classifications may already be in use and should be applied at initial stages of developing Ocean Accounts. The existing classification may not address all the requirements for comprehensive ocean accounting and, if so, could be further developed in future stages.

Some key ecosystem types for which countries may have information include:

• Coastal: beaches, coastal dunes, coastal flats, coastal water bodies (e.g., bays), estuaries, mangroves, rocky shores, saltmarshes, warm water coral
• Marine (to shelf): cold water coral, lagoons, seagrass beds (by type e.g., eelgrass), seaweed, warmwater coral reefs, pelagic (water column), and benthic (sea bottom)
• Marine (shelf to EEZ): softbottom/deepwater invertebrate communities (including heterotrophic coral), crustacean habitat, fish habitat, glass sponges, sea cucumber habitat, uninhabited sand, uninhabited rock, pelagic (water column), and benthic (sea bottom)

Some key uses of coastal and marine areas include: protected area, designated fishing, tourism, minerals, oil and gas, transportation, aquaculture, and energy production.

Individual environmental assets include minerals, oil and gas, commercial fish and crustacean stocks, commercial plant stocks, renewable energy potential (wind, wave, tidal). If these have already been mapped, then the maps could be integrated with the ecosystem extent maps. These may best be produced as a separate map layer and table columns rather than developing a mutually exclusive classification (e.g., seagrasses existing over mineral deposits).

Figure 11. Vietnam pilot for Quang Ning province: subset of ocean assets (coral, seagrass, mangrove, protected areas, ports).

Figure 12. Initial examples of delineating ocean bathymetry and selected ecosystem types (Canada)

Figure 13. Simple example of overlaying ocean assets with designated use (ESCAP Exercise)

Table X. Cover by use table.

4.3.3 Key condition variables

The choice of condition measures will be informed by national priorities and data availability. For example, data on nutrient concentrations would inform concerns about algal blooms or eutrophication. There are many approaches to “reference condition” and these should be agreed and policy relevant (e.g., pristine, sustainable, specific date in the past, pre-industrial, etc.). Generally, reference conditions should be distinct from “target conditions,” which may be set by policies, but not necessarily consistent with maintaining or improving capacity to provide optimal long-term ocean services.

Some key condition variables that would inform multiple ocean-related concerns include:

• pH (acidity)
• BOD, COD, Chlorophyll A, primary productivity (an indicator of eutrophication)
• Species diversity, ecosystem diversity (Shannon index of diversity)
• Concentration of floating plastics
• Sea surface temperature (SST)
• Coral condition (cover, % living, % bleached)
• Seagrass and mangrove cover (%)

Individual environmental assets may also be assessed in terms of condition. Minerals have different qualities (high/low grade minerals) and fish stocks can be “healthy” or “unhealthy.” Representing these in the condition accounts (Tables 2 and 3) would help understand the capacity of those assets to provide services.

A more extensive list is discussed in Essential Ocean and Ecosystem Variables.

4.4 Assessing supply and use of ocean services/inputs to the economy

Ocean services include both consumptive and non-consumptive use of biotic and abiotic assets. A consumptive service would be the extraction of offshore oil and gas. A non-consumptive service would be the enjoyment of the seascape. Given the many possible ocean services to consider (SEEA-CF natural inputs as well SEEA-EEA ecosystem services), many assessments begin with compiling data on the physical supply and use of the most environmentally, economically, or socially significant. Their significance can be informed through the priorities and concerns stated in the Scoping Report.

Physical flows of some consumptive services, largely flows from SEEA-CF “individual environmental assets,” could be estimated from the production of the economic sectors (Ocean Economy Satellite Accounts) that supply them: fish catch, fish from aquaculture, aquatic plants, offshore oil and gas, sand and minerals, biomedicines, and energy (wind, wave, or tidal). These are measured in the physical quantities in which they are extracted, harvested, or captured. Initial estimates would likely be made at the national level but could subsequently be allocated to the sub-national level to establish links to the ocean assets that provide them. For example, sand extraction could be allocated to the coastal beaches from which sand is extracted. Many of these resources are renewable, such as fish, and could be accounted for in terms of their sustainable yields.

Non-consumptive services would likely begin with the extent of ecosystems that provide them. For example, the extent of coral reefs could be linked to tourism services, while the extent of mangroves could be linked to coastal protection. Estimating the value of these services would require understanding their physical flows and applying appropriate factors. For example, the value of coastal protection could be based on the area of mangroves and their effectiveness in reducing storm surge impacts.

4.4.1 Key data sources

Initial data will likely be compiled at the national level, since it is at this level that national economic planning is done:

• Physical quantities of natural inputs can often be derived from statistical production surveys conducted by the NSO or resource departments. These surveys are usually used to support monetary supply and use tables for the SNA. If data are available only in monetary terms (e.g., the value of fish, sand, oil, gas, etc.), then these can be converted to physical quantities if the unit price is known ($/tonne of fish).
• Resource departments often track physical quantities of the resources extracted, harvested, or captured within their mandate. For example, many fisheries departments record catches, energy departments record physical quantities of energy (barrels of oil, m3 of gas, MWh of electricity), natural resource departments record tonnes or m3 of minerals, agriculture departments record quantities of aquaculture products.
• Spatial detail could be added if maps are available of where these natural inputs are extracted, harvested, or captured.

Non-consumptive services that are based on the extent of an ecosystem type will require maps of those ecosystem types and “factors” to estimate the quantities of services provided per unit. For example, one cubic metre of living mangrove biomass may provide over 200 g of carbon sequestration per year. Applying these factors will require an understanding of how to apply them: some factors refer to the living biomass, others to the total biomass including mud flats. Information on such factors and how to apply them may be available in environment, natural resource, or climate change departments.

There are no global databases of such factors yet available. The IUCN provides an overview of relevant tools including modelling approaches. Factors used in individual case studies are embedded in valuation databases, such as the Environmental Valuation Reference Inventory or TEEB Ecosystem Services valuation Database. Such factors are also embedded in ecosystem services models such as those mentioned in the IUCN document. Ongoing efforts in this space include the Nature Conservancy’s Mapping Ocean Wealth and past research on valuation of ecological services across multiple ecosystem types.

4.5 Assessing pollutants (flows to the environment)

If it is a priority to reduce the concentration of nutrients, hazardous chemicals, or plastics in the ocean, then understanding the sources of those pollutants will help manage their flows into the ocean. Initial Ocean Accounts could first assess the main ocean pollutant concerns (based on condition accounts) and then select the appropriate flow accounts/tables to understand their sources.

If equivalent SEEA-CF accounts (water emissions, solid wastes) are available nationally, then these could be allocated to drainage basin (for land-based sources) or marine area (for marine-based sources), using known indicators of economic activity and population. When allocating SEEA-CF accounts, these indicators are used to calculate the proportions of the pollutants generated in each drainage basin or marine area. For example, agriculture generates 5,000t of BOD and Drainage Basin 1 has 60% of the nation’s employment in agriculture. The initial estimate for BOD generated by agriculture in Drainage Basin 1 is then 3,000t/year.

If there are no existing SEEA-CF flow accounts, then estimates could be made by applying per-unit factors to the spatially detailed data on economic activity and population. For example, 5,000 people live in Drainage Basin 1 and each person is estimated to generate 0.365t of untreated solid waste per year. Therefore, the population in Drainage Basin 1 generates 1,825t of untreated solid waste per year.

All untreated wastes in a drainage basin do not necessarily flow to the ocean or if they do, they do not necessarily remain where they were deposited. Further analysis of dispersion modelling would be required for more accurate estimates. However, linking the sources with the conditions is a first step.

Flows to and from other territories may also be of concern. If so, then it would be advantageous for neighbouring countries to conduct similar assessments of flows to the environment.

4.5.1 Key data sources

Estimating land-based sources of pollution can be done by (a) allocating national SEEA-CF Water Accounts, Water Emissions Accounts, and Solid Waste Accounts to drainage basin, or (b) in the absence of SEEA-CF accounts, aggregating industry and population by drainage basin and applying per-unit factors. Both require indicators on industry activity (e.g., employment in agriculture, mining, manufacturing) and population by drainage basin. These can be estimated by aggregating spatially detailed data from economic surveys and census of population to drainage basin. Similar techniques may be used to estimate coastal economic activity and population.

Tables 10, 11, and 12 also include sources of pollutants by “marine area,” which may be taken as an Ecosystem Accounting Area (EAA) as designated in national marine administration.

4.6 Assessing the ocean economy

The ocean economy includes economic activities that are directly or indirectly related to the ocean. This includes industries such as fisheries, tourism, shipping, and offshore oil and gas. Ocean economy satellite accounts measure the economic contributions of these activities to national GDP.

4.6.1 Measures of economic activity

Gross value added (GVA) has several advantages for measuring ocean economic activity. It is additive across industries from very specific industries to very broad sectors. It is also additive from subnational to national levels. GVA permits the ocean economy to be described in terms of different “layers” as China does in its Ocean Accounts, as depicted in Figure 15 with “core,” “supporting,” and “outer” layers.

However, counting only the value added of specified industries in the ocean economy provides a partial view of the role of the ocean in the national economy. A more complete measure is gross output (GO), essentially the total sales of each industry, since GO includes the value of intermediate inputs. It is for this reason that GDP, the broadest measure of annual market-based economic activity, is usually determined by valuation at final demand. That is, the value determined at the point of the ultimate purchaser as defined by four groups: consumption, investment, government, and net exports (exports minus imports). At the point of final sale, all the inputs and their value added are accounted for.

GDP or GO has the advantage of breadth of inclusion of all economic activity related to the ocean and all of the inputs to that output, but it may result in double counting the same industry output if reported at the level of detail many countries are using. Value added avoids double counting but misses intermediate input values to ocean industries which are not specifically defined as part of the ocean economy. Both approaches are valid measures of the ocean economy and may be used together; indeed, comprehensive national income accounts should contain both as noted below. Alternately, one approach may be chosen as a starting point. GVA is the most common measure largely because it can most easily be specified by industry within the limits of industrial taxonomies used. It should be noted that the ISIC taxonomy is limited in the industrial detail available, compounded by the fact that national implementation in many countries remains coarse-grained.

Figure 15. Relationship among concepts of ocean economy in China. Source: Wang, 2016

Another distinction between GVA and GO for ocean economy satellite accounts is that GVA involves identifying industries and aggregating the ocean economy up from these. GO requires taking the measures of output measured at final demand and disaggregating down to the ocean-related components. To do this disaggregation requires:

• Identification of “direct ocean-related industries”
• The share of these industries’ output that is ocean related, termed a “partial”
• The use of input-output tables to measure the complete list of outputs of industries used by the primary ocean outputs.

The designation of “direct” ocean industries, or “core” industries (to use the Chinese term), is a matter of judgment for each country. The coefficient of ocean relationship (termed a “partial”) can be easily measured for some industries (such as marine transportation) but may be difficult to measure for others (such as tourism).

4.6.2 Ocean-related employment

One additional measure of economic activity that is commonly used is employment. Employment is measured by various combinations of administrative records (for example in the administration of unemployment insurance systems) and surveys of firms and individuals. While output is cumulative over a period, employment can be highly variable within and between periods and is not measured cumulatively. In many ocean industries, such as fishing and tourism, there can be very high levels of seasonality, which are rarely captured in the annual ocean economy satellite accounts. Moreover, employment in many key sectors of the ocean economy is characterized by very different arrangements than traditional employment. Employment is a particularly difficult concept with self-employment and subsistence or non-market employment, a common feature of fisheries in many parts of the world. Particular attention must be paid to the organizational structure (corporations, small proprietors, self-employed) to measure fishing-related employment. In other parts of the ocean economy such as marine transportation, the employment is recorded in one country (the flag country), takes place in other countries or in international waters, and the wages generated are sent to yet another country.

Ocean accounts provide a basis for addressing the spatial nature of the relationship between people and the ocean in terms of dependence and risks. Social data disaggregated by location and social sub-groups will provide a means of identifying priorities for intervention. It is important to note this section addresses only one aspect of social concerns and disaggregation. Other aspects are discussed throughout the document and can be found, for example, in Section 2.8.6, Section 3.6.1, and the Table in Appendix 6.4.

4.6.3 Key data sources

Information on the contribution of the fisheries industry, derived from economic surveys, will likely already be included in the national accounts. The fishing industry, as represented in the SNA, may not cover small-scale and recreational activities, and these may require special surveys or estimation from administrative data. Other sectors that may be easily extracted from the SNA include offshore oil and gas, boat and ship building, marine transportation, and marine-related construction (such as ports).

The data needed to construct ocean economy satellite accounts starts with each country’s SNA accounts. However, these accounts are rarely well suited to the demands of identifying ocean-related activities. Other data series such as natural resource outputs (value of fish landings), marine transportation, or, if available, regional data that permits differentiating between inshore and offshore activities areas such as tourism to be identified can be used. The most rigorous approach would be through surveys of firms either specific to the estimation of ocean economy satellite accounts (the approach taken in China) or an adaptation of other economic surveys used to construct national economic accounts.

Developing comprehensive ocean economy satellite accounts requires adding detail to the SNA in terms of economic sectors and commodities. As well, it requires guidelines to avoid double counting, to apply appropriate methods of valuation, and to appropriately scope the results to distinguish economic activities in ABNJ.

Specific data sources exploited in the compilation of ocean economy satellite accounts will vary by country. Each country has its own level of detail in the SNA and its own conventions about confidentiality of the detailed data. For this reason, it is highly recommended that initiatives to compile ocean economy satellite accounts be done in close collaboration with the NSO. The exercise could encourage adding detail to existing economic statistics in future years.

As an example of a moderately complex compilation of ocean economy satellite accounts in Canada, Table 27 indicates the data sources used for some of the key sectors.

Table 27. Indicative data sources for Canada’s Marine Economy Accounts

4.7 Assessing ocean governance

Ocean governance refers to the policies, regulations, and management practices that shape human interactions with the ocean. Ocean governance accounts can track the effectiveness of these governance mechanisms in achieving sustainable ocean management.

4.7.1 Key data sources

Many national and institutional constitutions, policies, plans, priorities, and strategies are posted online, but ongoing processes, such as discussions on an ocean strategy, may not be readily available. Also, departmental mandates and data holdings may be online.

Information on ocean governance may already be summarized in an NBSP, State of the Environment Report (SOER), FDES compendium, or VNR (Voluntary National Review). If the NSO is engaged in SDG reporting, they should have an overview of national data holdings related to the ocean.

ESCAP has produced an assessment of SDG14.2.1 (Proportion of national exclusive economic zones managed using ecosystem-based approaches) in terms of progress in MSP by coastal member States in Asia and the Pacific. It includes detailed information on national MSP and ICZM-related activities, policies, plans, and strategies. IOC-UNESCO provides a more summary, global assessment.

4.8 Compiling summary indicators

The outputs of an ocean accounting pilot study will most likely include several detailed tables on ecosystem extent, condition, and services with respect to the issue and study area being addressed. However, providing policy-relevant summary indicators will ensure that the results of the study are easy to communicate. Part of this communication should also include an assessment of data quality and availability. The detailed tables and databases used to produce the Ocean Accounts will serve to “drill down” into the locations and specific measures underlying the summary indicators. This would contribute to the compilation of tables in Combined Presentation and Ocean Wealth Accounts, such as Tables 19, 20, and 21.

The summary indicators should address the topic of the study and put the study in context.

The Framework for the Development of Environment Statistics (FDES) also provides recommendations on several ocean-related indicators as part of the overall framework measuring the state of the environment, our dependence on it, our impact on it, its impact on us, and what we are doing to manage those impacts.

Table 28. provides an overview of some summary indicators that could address the topics in the pilots mentioned earlier

4.8 Summary of current rediness level for different account types

Environmental accounting

Social accounting

Economic accounting

Governance accounting