(September 17, 2015)

National Bureau of Statistics of China

The Third Plenary Session of the 18th Central Committee of the CPC put forward the reform task to compile natural resource balance sheets on trial basis. The NBS earnestly implemented the decisions of CPC Central Committee and the State Council, worked together with related departments and ministries to analyze the basic work and data source of statistical surveys and the monitoring of natural resources in China, and learned from the international standards and experiences of developed countries. Based on these, the NBS proposed the Pilot Program of Compiling Natural Resource Balance Sheets (hereinafter the Pilot Program for short). The Pilot Program outlined the objectives, principles, contents, methods, pilot areas and schedules of compiling the natural resource balance sheets.

1. Objectives and Significance

Compilation of natural resource balance sheets is a fundamental institutional development to reform the ecological civilization system. The compilation of natural resource balance sheets helps to develop physical accounts of major natural resources such as land resource, forest resource and water resource, which will push forward the establishment of a scientific and standardized statistical survey system of natural resources, help to better understand the real outstanding and changes of natural resource assets in China, and provide information to improve the evaluation and accountability system of ecological civilization performance over resource consumption, environment contamination and ecological benefit. It will also provide information, surveillance and early warning, and decision-making support to effectively protect and sustainably utilize natural resources, and promote ecological civilization and green, low-carbon development.

2. Fundamental Principles

Five principles outlined in the Pilot Program should be adhered to in compiling natural resource balance sheets on trial basis.

First, the design shall be integrated. The requirement to speed up the development of ecological civilization initiated by the Central Committee of CPC and the State Council should be implemented earnestly. The compilation of natural resource balance sheets should be included in the development of ecological civilization system, and be aligned with major regimes such as limit control of resources and ecological environment, regulation of property rights and uses of natural resources, natural resource auditing of outgoing officials, and the accountability of damaging ecological environment. The compilation of major natural resource balance sheets should be designed as a whole based on the natural law and organic connections of the ecological system.

Second, priorities in accounting natural resources shall be highlighted. In response to the requirements of ecological civilization and the expectations of the people, the accounting of natural resources with important ecological functions shall be prioritized and improved continuously in practice.

Third, quality indicators shall be emphasized. The compilation of natural resource balance sheets should reflect not only the changes in the scale of natural resources, but also the quality. The combination of quality indicators and quantity indicators will show the changes of natural resources and their implications on ecological environment more comprehensively.

Fourth, the authenticity and accuracy shall be guaranteed. A statistical monitoring indicator system of natural resources should be established and improved according to the requirements of high quality, pragmatism and effectiveness, while modern technologies and the rule of law shall be employed to improve the statistical monitoring capacity and the quality of statistics, and ensure the authenticity and accuracy of basic data and data for compiling the natural resource balance sheets. It should be noted that the compilation of natural resource balance sheets does not involve the ownership and management of natural resources.

Fifth, international experiences shall be drawn on. A scientific and feasible compilation system of natural resource balance sheets shall be established based on the requirements of ecological civilization development, reserve of natural resources and the statistical monitoring foundation in line with international standards such as System of Integrated Environmental and Economic Accounting (SEEA) set by the United Nations, during which international experiences shall be drawn on and exploration and innovation be made.

3. Contents

Based on the practical needs to protect and control natural resources, the accounting contents of natural resource balance sheets in China mainly cover land resource, forest resource and water resource. The balance sheets of land resource mainly cover the utilization and changes in the stocks of cropland, forestland and grassland etc., and the quality grade distribution and the changes of cropland and forestland; the balance sheets of forest resource cover the stock volume and the stock volume per unit area of natural forests, cultivated forests and other forests; the balance sheets of water resource cover the condition of surface water and groundwater resources, and the quality grade distribution and the changes of water resources. According to the Pilot Program，pilot areas will collect and review the relevant basic data respectively, study key issues including data sources and data quality control etc.，and explore the compilation of natural resource balance sheets. If possible, pilot areas can also explore the compilation of mineral resource balance sheets depending on their actual situations.

4. Basic Methods

Natural resource balance sheets reflect the stock of natural resources at the beginning and the end of the accounting period and the changes in the period. The accounting period lasts from January 1st to December 31st of every calendar year. Based on the survey data of natural resource management departments, the balance sheets shall be compiled to show the physical stock and the changes of major natural resources in the framework of natural resource accounting theory.

The basic equilibrium of natural resource balance sheets are as follows: the beginning stock + increases of the current period - decreases of the current period = the closing stock. The beginning stock and closing stock come from surveys and administrative records of natural resources and the beginning stock of the current period equals the closing stock of the last period. There are two main factors affecting the changes of natural resources during the accounting period, of which one is artificial factor, e.g. the changes of forest resource assets caused by cultivation and logging; the other is the natural factor, e.g. the changes of water resource assets caused by precipitation and evaporation. Due to the differences in natural attributes and their relationship with the economy, the ways and causes for the increases and decreases of each kind of natural resources vary. According to the change factors of natural resources, in addition with the administrative records and data from statistical surveys and monitoring, statistical ledgers will be established showing the changes of natural resources with relevant indicators included.

5. Pilot Areas and Schedule

According to the representativeness of natural resources and the concerned statistical foundation, Hulun Buir of Inner Mongolia, Huzhou of Zhejiang Province, Loudi of Hunan Province, Chishui of Guizhou Province and Yan’an of Shaanxi Province are selected as the pilot areas to compile the balance sheets of natural resources.

The pilot program will start from the second half of 2015 and complete in the end of December 2016.

According to the experiences gained from the pilot areas and on the basis of further investigation and study, the National Bureau of Statistics will work with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Land and Resources, the Ministry of Environmental Protection, the Ministry of Water Resources, the Ministry of Agriculture, the National Audit Office, and the State Forestry Administration to develop the compiling system of natural resource balance sheets.