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Measuring the transformation of the economy: green growth indicators - Policy Perspectives 2016

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Over the last decade, statistical systems in the Eastern Europe, Caucasus and Central Asia (ECCCA) region have seen significant improvements. These include, for example, a widening coverage of data collection, gradual adoption of international statistical standards and the development of new statistical products, including online databases. However, the lack of solid evidence on the economic consequences of natural capital depletion and environmental degradation is often a barrier in promoting greener production and consumption. To improve the situation, several countries in the EECCA region are initiating the production of data on the environment and economy nexus in accordance with the System of Environmental and Economic Accounting (SEEA) framework,2 and are working towards the implementation of a Shared Environmental Information System (SEIS) developed by the European

Environment Agency (EEA). Environmental ministries, in partnership with ministries of economy and the statistical office, can catalyse a further shift in development planning by adopting new analytical tools to factor the costs of natural capital depletion into their decision-making.

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OECD: Measuring the transformation of the economy - green growth Indicators

In the countries of the European Union (EU) Eastern Partnership (EaP) (Armenia, Azerbaijan, Belarus, Georgia, Republic of Moldova and Ukraine), the OECD teamed up with the European Union to implement the EaP GREEN project,3 which helps these economies to move towards a green economy. In this context, a Guide on Measuring the Green Transformation of the Economy, has been developed to help governments in the EaP countries in establishing national frameworks for monitoring and analysing the transition towards green growth and to support them in developing national Green Growth Indicators (GGIs), building on the SEEA and SEIS.

System of Environmental and Economic Accounting (SEEA) The SEEA is a world-wide statistical standard adopted at the UN in 2012 to facilitate the combination of environmental and economic data. It provides a consistent, coherent and comprehensive framework for integrating economic and environmental statistics with internationally agreed standard concepts, definitions, classifications, accounting rules and tables. International organisations, including the OECD, recommend that most data used for green growth measurement should, where possible, be produced in accordance with the SEEA framework (OECD, 2011 and 2014). A number of the indicators from the OECD green growth measurement framework can be derived from the SEEA central framework. For instance, indicators for environmental efficiency and resource efficiency can be derived from the physical flow accounts. By applying the SEEA framework, monetary and physical data can easily be combined in a consistent format, for example for calculating intensity and productivity ratios. And macro-level indicators can be broken down by economic sector and by industry, to show structural changes over time, to analyse environmental pressures exerted by different industries, and to distinguish government responses from those of the business sector or private households (OECD, 2014).

Shared Environmental Information System (SEIS) and green growth The European Environmental Agency (EEA), in co-operation with several partners that include UNECE, UNEP and OECD, is working towards the implementation of a Shared Environmental Information System (SEIS) to improve the collection, exchange and use of environmental data and information across the pan-European region (including all EECCA countries). With the support of technologies such as the internet, the approach would link all existing data and information flows relevant at the country and international levels to enhance the availability of integrated, relevant, high quality, timely and easily accessible environmental information. One of the principles of SEIS states that information should be collected once, and shared for multiple purposes (OECD et al. 2015). While many indicators describing the environmental and resource productivity of the economy, the natural asset base, and the environmental quality of life are similar, policy responses, the socio-economic context and demand-based indicators are not covered under SEIS. The development of green growth indicators aims to fill this gap.

2

The SEEA framework has been developed under the auspices of the UN with the participation of the OECD and other international organisations. http://unstats.un.org/unsd/envaccounting/seea.asp.

3

The EaP GREEN, Greening Economies in the Eastern Neighbourhood, is funded primarily by the European Commission (EC) and implemented by the OECD in partnership with UNEP, UNIDO and UNECE.

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