Towards a sustainable society with ecosystem accounting
Objective and benefits of ecosystem accounting
Our key economic indicator, gross domestic product (GDP), does not take into account the unsustainable use of ecosystems and the services they provide, or the deterioration of ecosystems caused or accelerated by human activity, for example, eutrophication of water bodies, the accelerating extinction wave and climate emergency. Our entire global economic system, as well as the policies that guide it, demands systemic change. One of the most important tools for achieving this goal is ecosystem accounting.
Ecosystem accounting extends the traditional system of national accounts by taking into account both the benefits of natural ecosystem services and the harm caused by human activities to mankind and economic activities. Ecosystem accounts raise natural capital on an equal footing with human, physical and social capital, integrating natural ecosystems into an integral part of the national economy, and by making more visible the relationship between economic activities and ecosystems.
Ecosystem accounting brings together existing information on the extent and condition of ecosystems, and the supply and use of ecosystem services. The aim is to bring the importance of ecosystems to the national economy and humanity into the already established national accounts. Ecosystem accounting enables, systematic monitoring of changes in ecosystems, detection of regional differences, and various scenario models to assess, for example, the economic, employment and ecosystem impacts of different policy recommendations.
On the other hand, ecosystem accounting provides quantitative information about the interaction between nature and man: by measuring and monitoring the trends of ecosystem service flows to their users, conclusions can be drawn whether this interaction is on a sustainable or unsustainable basis. However, the mere increase in public awareness of the inseparable link between human activities, nature and the economy is in itself a very important objective.
Ecosystem accounts can be compiled in both biophysical and monetary terms. The numerous benefits of nature are often not priced in the market and are ignored in economic decision-making. Monetary ecosystem service accounts concretely highlight the value of the benefits provided by nature.
The link between environmental and ecosystem accounts
Ecosystem accounts are also part of a broader accounting framework. Environmental Accounts (System of Environmental Economic Accounts, SEEA) consists of accounts and balance sheets describing the amounts of use of natural resources, the load from the use of natural resources, and the economics and business activities of environmental protection. Environmental accounts are typically sector-specific, such as forestry, water and energy accounts. Ecosystem accounts differ from other environmental accounts in two significant ways.
First, the focus of the accounts is on Earth’s terrestrial, aquatic and marine ecosystems and the services they provide, rather than just natural resources exploited by humans. Accordingly, ecosystem services which do not generate products or services sold on the market will also be taken into account.
Secondly, ecosystem accounts have a spatial dimension – the information contained in accounts can be represented both in the form of accounting tables and as different map representations. This opens up endless possibilities for a variety of spatial data analyses, as well as the possibility of combining ecosystem accounting data with other spatial planning systems and databases.
Ecosystem accounting actors in Finland
Ecosystem accounting in Finland is being developed by Statistics Finland, the Finnish Environment Institute, and the Natural Resources Institute Finland. Implementation requires close cooperation between different actors, a clear division of responsibilities, and transparent information exchange, as well as significant investments in skills development, data collection, and resourcing. A clear agreement on the division of responsibilities and resourcing has not yet been reached. The challenges posed by ecosystem accounting for data collection are known, and to overcome them, data must be collected using various methods and through cooperation between statistical authorities, research institutes, universities and their research infrastructures, and companies.
Ecosystem Accounting Network
The Ecosystem Accounting Network is an informal network of actors interested in ecosystem accounting, established in June 2022. The network includes about fifty Finnish actors representing various authorities, research institutes, universities, municipalities, and companies. The network is coordinated by the Finnish Environment Institute.
Projects and publications related to ecosystem accounting
Ecosystem Accounting research & development projects in Syke
- Developing statistics and accounts for ecosystem services, plastic waste and material flows - 2023-FI-ECOPLASMA (Syke, Luke, Tilastokeskus) 2024–2025
- Kunnallinen ekosysteemitilinpito kaupunkien viher- ja vesialueiden arvon mittaamisessa (Countecos) (Sitra, Espoon kaupunki, Pirkkalan kunta, Tampereen kaupunki, Syke) 2023–2025
- Suomen Ekosysteemiobservatorio (FEO) 2020–2024. Ekosysteemitilinpitoa käsiteltiin työpaketeissa 1 (Ympäristötiedon käyttö) ja 2 (Käytännön sovellukset ja testaukset).
- Developing pilot accounts for marine, freshwater and urban ecosystems and packaging materials – 2020-FI-ENVECOPACK (Syke, Luke) 2021–2023
- Urban experimental ecosystem accounting pilot in the Nordic cities (Syke, NINA) 2021
- From Marine Ecosystem Accounting to Integrated Governance for Sustainable Planning of Marine and Coastal Areas – MAREA (Syke) 2020–2022
- Novel methods for the accounting of forest ecosystems and circular materials - 2019-FI-ENVECO (Syke, Luke) 2020–2021
- Mereisten avainelinympäristöjen suojelu toiminnallisuudesta arvottamiseen – MERIAVAIN (Syke), 2018–2021
- Mapping and Assessment for Integrated Ecosystem Accounting – MAIA (Syke, osana konsortiota), 2018–2022
- From existing environmental and economic data and models to experimental accounting of marine, freshwater and forest ecosystem services in Finland - 2018-FI-ECOSYSTEMS (Syke, Luke) 2018
- Arctic Freshwater Capital in the Nordic Countries (Syke) 2016–2018
- Kohti ekosysteemitilinpitoa - ESTAT-EEA (Syke, Luke) 2017–2018
- Kansallinen ekosysteemipalveluiden taloudellisen merkityksen arviointi (Suomen TEEB) (Syke) 2013–2014
Peer-reviewed publications on Ecosystem Accounting (Syke, Luke)
- Costadone, L., Lai, T.-Y., Hurskainen, P., Kopperoinen, L. (2024). Co-creating urban ecosystem accounting: Physical and monetary accounts of runoff retention service provided by urban green spaces. Ecosystem Services 65, 101576.linkki vie toiselle sivustolle
- Lai, T.-Y., 2020. Valuing marine natural capital with multiple ecosystem services for ecosystem accounting by different valuation approaches (manuscript in doctoral dissertation). University of Helsinki
- Lai, T.-Y., Salminen, J., Jäppinen, J.-P., Koljonen, S., Mononen, L., Nieminen, E., Vihervaara, P., Oinonen, S., 2018. Bridging the gap between ecosystem service indicators and ecosystem accounting in Finland. Ecological Modelling 377, 51–65.linkki vie toiselle sivustolle
- Lankia, T., Neuvonen, M., Pouta, E., Sievänen, T., Torvelainen, J., 2020. Outdoor recreation in ecosystem service accounting: pilot accounts from Finland. Scandinavian Journal of Forest Research 35, 186–197.linkki vie toiselle sivustolle
- Mononen, L., Auvinen, A.-P., Ahokumpu, A.-L., Rönkä, M., Aarras, N., Tolvanen, H., Kamppinen, M., Viirret, E., Kumpula, T., Vihervaara, P., 2016. National ecosystem service indicators: Measures of social-ecological sustainability. Ecological Indicators, Developing and Applying Ecosystem Services Indicators in Decision-Support at Various Scales 61, 27–37.linkki vie toiselle sivustolle
- Oinonen, S., Gronbaek, L., Laukkanen, M., Levontin, P., Lindroos, M., Nieminen, E., Parkkila, K., Pintassilgo, P., Pulkkinen, H., & Romakkaniemi, A. (2016). International Fisheries Management and Recreational Benefits: The Case of Baltic Salmon. Marine Resource Economics, 31(4), 433-451.linkki vie toiselle sivustolle
- Salminen, J.M., Veiste, P.J., Koskiaho, J.T., Tikkanen, S., 2018. Improving data quality, applicability and transparency of national water accounts – A case study for Finland. Water Resources and Economics 24, 25–39.linkki vie toiselle sivustolle
- Virtanen, E.A., Viitasalo, M., Lappalainen, J., Moilanen, A., 2018. Evaluation, Gap Analysis, and Potential Expansion of the Finnish Marine Protected Area Network. Front. Mar. Sci. 5.linkki vie toiselle sivustolle
Masters theses
Guidance for ecosystem accounting calculation and reporting
Ecosystem accounting is guided internationally by the statistical standard and guidelines of the UN Statistics Division. Experts from around the world have participated in its preparation. More technically detailed guidelines for biophysical modeling of ecosystem accounting can be found in a separate manual. The UN guidelines allow reporting countries to choose the source data and methods that best suit each country's resources and knowledge level for ecosystem accounting. The UN website also offers an online course on ecosystem accounting (registration required).
In Europe, Eurostat, together with the Task Force on Ecosystem Accounting, is preparing technical guidelines in line with the obligations brought by the EU statistical regulation.
EU Statistical Regulation for ecosystem accounting
The biophysical ecosystem accounts were adopted as an international statistical standard at a meeting of the UN Statistical Committee in March 2021. This took place after a decade of international research and development efforts, in which Finland also actively took part.
Statistical standard refers to the recommendation of making statistics with unified concepts, definitions, classifications, and connections between accounts/statistics. Therefore, the recommendation does not yet oblige statistics to be made but supports making them statutory. Admission to the statistical standard meant that the statistical framework for ecosystem accounts was seen as sufficiently ready for global implementation, which facilitates comparisons between countries and contributes significantly to monitoring, for example, the implementation of the sustainable development goals.
At the same time, Eurostat, supported by the ecosystem accounting collaboration group and the European Directors of Environmental and Energy Statistics (DIMESA), prepared an extension to the environmental accounting regulation, which included ecosystem accounting as a new mandatory part for EU member states.
The new statistical regulation was approved by the European Parliament and the Council on 6 December 2024 and came into force on 26 December 2024. According to the regulation, the first reports for the reference year 2024 must be submitted by each EU member state in 2027.
The Finnish Environment Institute (Syke) actively participates in the work of Eurostat's ecosystem accounting collaboration group as Finland's representative. In addition to drafting the statistical regulation, the work includes developing technical and methodological guidelines and testing ecosystem accounting modeling tools.
More information from Syke experts
- Natural resource and environmental economics, ecosystem services and accounts, natural capital: Group manager Soile Kulmala
- Aquatic ecosystem accounting, monetary valuation: Senior research scientist Liisa Saikkonen
- Marine ecosystem services and accounting: Researcher Susanna Jernberg
- Ecosystem accounting and monetary valuation: Researcher Tin-Yu Lai
- Ecosystem services, urban and municipal ecosystem accounting: Senior researcher Leena Kopperoinen
- Ecosystem extent and condition, EU statistical regulation and Eurostat EA Task Force: Senior researcher Pekka Hurskainen
This website was realized as part of Eurostat Grants project "2020-FI-ENVECOPACK", grant agreement 101023419.