Measuring Natural Resources in the National Accounts

1. Introduction

1.1. What is this guide about?

1. The 2025 System of National Accounts (SNA) (European Commission et al., 2025[1]) (hereinafter referred to as 2025 SNA) includes important changes compared with the 2008 SNA when it comes to the measurement and recording of natural capital. Natural capital is understood in the 2025 SNA as both natural resources and ecosystem assets, but ecosystem assets are outside the asset boundary of the 2025 SNA, so the scope of measurement in this guide is natural resources. Natural resources are defined as “assets that naturally occur, such as land, mineral and energy resources, water resources, and biological resources that have an economic value and over which ownership may be enforced and transferred” (2025 SNA, §11.11).

2. The changes in the 2025 SNA consist of an explicit recognition of renewable energy resources such as wind and solar as economic assets, the splitting of natural resource assets between legal owner (e.g. government) and the extractor (producer) based on their shares of economic ownership, several changes to the treatment of biological resources that yield once-only products such as timber and fish resources, and recording the depletion of natural resources as a cost of production.

3. The national accounts measure economic activity, with Gross Domestic Product (GDP) being the most widely used measure of economic growth. Net Domestic Product (NDP) in the 2008 SNA measures growth after accounting for the depreciation of fixed capital; but it does not take into account that today’s growth often comes at the expense of depleting natural resources, which may have implications for future growth. This changes as the depletion of natural resources is recorded as a cost of production – and therefore in NDP – in the 2025 SNA.

4. These changes have been necessary to ensure that the 2025 SNA continues to be well equipped as the statistical framework for measuring economic activity and continues to provide decision makers with the information they need in dealing with some of the pressing policy issues of our time such as addressing climate change, enabling the energy transition, and placing economies on a path to more sustainable growth.

5. While the valuation of natural resources and depletion is already part of the 2008 SNA, recording depletion as a cost of production in the 2025 SNA instead of another change in volume as in the 2008 SNA raises the importance of these estimates and thus it is recommended that all countries start compilation.

6. In the case of renewable energy resources, which are new types of assets in the 2025 SNA, this guide offers international guidelines to support compilation for national accounts purposes. Likewise, splitting of asset values between legal owner and extractor (producer) is already recommended in the System of Environmental-Economic Accounting 2012 — Central Framework (SEEA CF) (United Nations et al., 2014[2]) but is a new topic for national accountants.

7. Together, these new recommendations will change some of the key macroeconomic aggregates that are derived within the 2025 SNA. In addition to net measures of production such as NDP, they will affect net measures of income and saving and net worth. It is of the utmost importance that countries compile these data in a comparable manner, based on similar methods and approaches, and thereby ensure international comparability. For this purpose, Measuring natural resources in the national accounts: a compilation guide has been developed.

1.2. Who is this guide for and what will it provide?

8. The primary objective of the guide is to support implementation and compilation of the 2025 SNA when it comes to the measurement and recording of natural resources.1 The guide frequently refers to other handbooks such as the SEEA CF ([2]) or the EU Forest Accounts Handbook (Eurostat, 2024[3]), to the extent these handbooks are consistent with the 2025 SNA concepts, as they usually provide more details on specific topics than the SNA does.2

9. The compilation guide is primarily intended for national accounts compilers in all countries in the world. It may also be relevant for environmental accountants, compilers of energy or environmental statistics, and the research community at large. The guide assumes familiarity with basic national accounts terminology and concepts, but not with the measurement of natural resources. While the guide discusses the measurement of natural resources, it is important to emphasise that the resulting estimates are intended for usage in the context of macro-economic policy making. For instance, valuation of fish resources is not intended to be used directly for fisheries management, for which more detailed information would be required.

10. As countries differ in their data availability and resources for conducting measurement of natural resources, a Tiered approach is followed in this guide: Tier 1 describes basic methods for countries with limited data availability and/or resources; Tier 2 describes the standard approach which most countries would be expected to apply; Tier 3 covers advanced methods requiring high data availability and/or resources. This guide describes Tier 2 as the default and gives it most attention, but also contains dedicated sections in Chapters 4 and 5 that briefly describe the Tier 1 and Tier 3 approaches. The Tiers may also be useful for countries to communicate to users as part of the meta-data – for instance in their Gross National Income (GNI) inventories – or be used to set goals for improving methods over time.

11. Natural resources cover a diverse set of assets, including land, mineral and energy resources, biological resources, water resources, and other resources such as radio spectra. The focus of the guide is on those areas where the 2025 SNA advanced compared to the 2008 SNA and therefore will concentrate on mineral and energy resources (including renewables) and biological resources (especially those yielding once only products such as timber and fish resources). Some topics are not included as they are considered out of the scope of this guide, such as emission permits which are treated as financial assets in the 2025 SNA. For the measurement of land, specific guidelines already exist (Eurostat and OECD, 2015[4]). This guide will therefore discuss land only in the context of forest land and its depletion. The valuation of water resources is also not discussed in detail in this guide: the topic was not specifically addressed during the 2008 SNA update process but will be included in the upcoming SEEA CF revision process.

12. Four Excel workbooks accompany this guide which contain hypothetical examples to illustrate the calculations and make it easier for countries to start compilation. These are: Workbook: subsoil assets;3 Workbook: renewable energy resources; Workbook: timber resources and forest land, and Workbook: fish resources.

1.3. The research process underpinning the guide

13. The United Nations Statistical Commission (UNSC) endorsed the programme to update the 2008 SNA in 2021. The process has been overseen by the Inter-Secretariat Working Group on National Accounts (ISWGNA), which consists of the five international organisations that are the co-publishers of the SNA: the European Commission, the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations, and the World Bank. The ISWGNA is assisted by the Advisory Expert Group on National Accounts (AEG), which consists of a group of highly experienced national accountants who are invited to serve as advisers.

14. The revision process started from the SNA Research Agenda,4 from which a list of issues was selected based on urgency and feasibility of resolving the issues (SNA Update, 2021[5]). The issues were grouped into three priority areas: digitalisation, globalisation, and well-being and sustainability. Seven task teams were formed, of which five were organised jointly with the IMF Balance of Payments Committee that was working on a parallel update of the sixth Balance of Payment Manual (BPM6) in close coordination with the 2008 SNA update. For the measurement of natural resource, the most relevant was the Well-being and Sustainability Task Team (WSTT), which included an area group on environmental sustainability.

15. A total of 75 Guidance Notes5 were produced as starting point for the SNA revision process. Each of the Guidance Notes focused on a specific part of the SNA Research Agenda and was drafted by experts tasked with analysing the issue and making recommendations. Each went through several iterations, including global consultation, before endorsement by the AEG. The recommendations contained in the endorsed Guidance Notes form the building blocks based on which the 2025 SNA was drafted.

16. In 2023, the ISWGNA asked the OECD to lead work to support implementation of the 2025 SNA’s recommendations on measurement of natural capital by producing practical guidance for compilers. To do this, the OECD established an Expert Group on Natural Capital (EGNC) in July 2023. Specifically, the remit of the EGNC was to develop a compilation guide based on the recommendations in the following SNA Update Guidance Notes: WS.6 Accounting for the Economic Ownership and Depletion of Natural Resources (SNA Update, 2023[6]); WS.8 Accounting for Biological Resources (SNA Update, 2023[7]); WS.10 Valuation of Mineral and Energy Resources (SNA Update, 2023[8]); and WS.11 Treatment of Renewable Energy Resources as Assets (SNA Update, 2023[9]). Several other Guidance Notes with relevant elements were also used as inputs for the compilation guide: WS.9 Recording of Provisions (SNA Update, 2023[10]), WS.12 Environmental Classifications (SNA Update, 2023[11]), and AI.1 Valuation principles and methodologies (SNA Update, 2023[12]).

17. An invitation to join the EGNC was sent to the following groups: countries that participate in the OECD Working Party on National Accounts (WPNA); countries that have participated in the SNA update process as part of the WSTT or have contributed to the Guidance Notes mentioned above; ISWGNA members, selected international experts. The UN Committee of Experts on Environmental-Economic Accounting (UNCEEA), the Joint OECD/United National Economic Commission for Europe (UNECE) Seminar on the Implementation of SEEA and the Government Finance Statistics community were also asked to nominate a representative. Several countries and organisations joined at a later stage because they expressed interest in participating; and some countries were also invited early 2024 to improve geographical and economic development balance in the EGNC. A total of 18 countries and 8 international organisations have participated in the EGNC (see Foreword).

18. The EGNC met virtually on a quarterly basis between October 2023 and January 2025. The kick-off meeting on 10-11 October 2023 reviewed the relevant recommendations for changes in the 2025 SNA in relation to natural capital, discussed high priority topics and the timetable for producing the compilation guide, and started to look at the existing guidelines and country compilation practices. After the meeting, a short survey was conducted amongst the members to further assess priorities. Based on the responses, and to facilitate technical discussions, five subgroups were formed, open to all EGNC members: subsoil assets, renewable energy, biological resources (split into timber and fish resources), and depletion.6

19. The subgroups met regularly between December 2023 and September 2024.7 For each of the subgroups, the Secretariat prepared a discussion note structured in the form of draft guidance, with a list of issues requiring further discussion. In addition, Excel workbooks were prepared with examples to illustrate calculations. The discussion notes and workbooks have been revised based on the results of the group discussions and country testing and form the building blocks of this compilation guide.

20. The subgroups also served as a mechanism for countries to present initial results of testing and obtain feedback. The testing has also produced examples that are included in this guide.

21. The second meeting of the EGNC took place on 24-25 January 2024. Its main objectives were to discuss progress made in the subgroups, discuss a number of cross-cutting topics: discounting – based on a separate issues note; how to compile estimates for natural resources in constant prices/volume terms; and how to set the rate of return to fixed capital. The meeting also discussed an initial draft outline of the compilation guide. As a follow-up of the meeting, another survey was held to further assess member practices and preferences on discounting and rates of return to fixed capital.

22. The third meeting of EGNC was held on 29-30 May 2024. Its main objectives were again to discuss progress made in the subgroups and several cross-cutting topics including discounting and rates of return to fixed capital (continuing the previous discussion), taxes and subsidies and the split asset approach. Finally, the meeting also discussed a detailed annotated outline of the compilation guide.

23. The fourth meeting of EGNC was held on 9-10 October 2024. Its main objectives were to update on the outcomes of the final round of subgroups and relevant AEG discussions; review the first comprehensive draft of the compilation guide, and share selected results of country testing. The meeting discussed several remaining issues, agreed on the set of country examples that would be featured in the guide, as well the process towards finalisation of the guidelines.

24. The fifth and final meeting of EGNC was held on 21 January 2025 to discuss the feedback received during the broad review of the second draft and agree on any remaining issues. An interim version of the guide was included as a background document to the UN Statistical Commission in March 2025. The interim version was subsequently sent for global consultation (April/May 2025), leading to a revised version, which after final review by the EGNC was adopted by the AEG (October 2025).

25. It should be noted that at the time of finalising the guide, some of the codes associated with the classification hierarchies of the 2025 SNA were still under review and may undergo change. Users are advised to consult the final published version of the SNA when it becomes available.

1.4. How this guide is structured

26. This guide consists of six chapters and an annex. Chapter 2 Measuring natural resources starts by looking at the changes to the asset classification for natural resource in the 2025 SNA compared with the 2008 SNA. Second, it discusses fundamental differences between accounting approaches and welfare economics. Third, it clarifies the relationship between the SEEA as statistical standard for describing the interrelationship between economy and environment, and the SNA. The chapter then sets out in detail the key 2025 SNA recommendations pertaining to natural resources that form the point of departure of this compilation guide, including their rationale. The final section of the chapter explores in detail the 2025 SNA asset classification for natural resources.

27. Chapter 3 Valuation of natural resources describes suitable valuation methods for natural resource, as agreed in the context of the 2008 SNA update process and discussed by the EGNC, while Chapters 4 and 5 look at the practical applications for mineral and energy resources and biological resources. In Chapter 3, Section 3.2 discusses valuation methods that are suitable for compiling natural resource estimates for the national accounts and which are the preferred methods. Section 3.3 describes in detail the Net Present Value method that may be used to estimate asset values on the basis of future economic benefits (which are called resource rents in case of natural resources). Section 3.4 discusses the treatment of taxes and subsidies in deriving estimates of resource rent. Section 3.5 details how to measure and record depletion, Section 3.6 covers the split-asset approach, Section 3.7 provides guidance on the treatment of negative resource rents. A text box with a summary of key recommendations concludes the chapter.

28. Chapter 4 Mineral and energy resources covers both non-renewable mineral and energy resources and renewable energy resources. Sections 4.2 and 4.3 present guidance for the Tier 2 (standard or default) approach and follow the same structure. First, the scope and definition of the assets included in the national accounts is provided, as well as relevant classifications. Second, four compilation stages are presented and explained: identifying the types of assets to be included; collecting the physical data; building the monetary asset accounts; and integration of the results into the sequence of economic accounts. Third, specific compilation issues are discussed; and finally, modifications to the standard (Tier 2) approach. A text box with a summary of key recommendations concludes the chapter.

29. Chapter 5 Biological resources discusses the measurement of biological resources with a particular focus on resources yielding once-only products. Section 5.2 focuses on timber resources and forest land, and Section 5.3 on aquatic resources (especially fish). Both sections present guidance for the Tier 2 (standard or default) approach and follow the same structure in terms of subsections. First, the scope and definition of the assets to be included in the national accounts is provided, as well as relevant classifications. Second, four compilation stages are presented and explained: identifying the types of assets to be included and valuation methods; collecting the physical and price data; building the monetary asset accounts; and integration of the results into the sequence of economic accounts. Third, specific compilation issues are discussed; and finally, modifications to the standard (Tier 2) approach. Section 5.4 discusses (briefly) also the valuation of other classes of biological resources such as cultivated biological resources yielding repeat products, wild animals and non-timber forest resources, as well as animals for slaughter and aquaculture. A text box with a summary of key recommendations concludes the chapter.

30. Chapter 6 Volume measures, time series, quarterly estimates and recording natural resources details how the various estimates of natural resources that have been discussed in previous chapters can be recorded in a full sequence of economic accounts. The chapter starts in Section 6.2 with discussing the compilation of stocks and flows of natural resource in volume terms. Section 6.3 looks at the compilation of a time series of natural resources especially how to backcast asset values. This is followed by a discussion in Section 6.4 of quarterly estimates of depletion required to compile Net Domestic Product (NDP) on a quarterly basis. Section 6.5 presents split-asset calculations (how to calculate the legal owner’s share of natural resource assets). Finally, Section 6.6 discusses full sequences of accounts (T-accounts) for the four types of natural resource discussed in Chapters 4 and 5 – subsoil assets, renewable energy resources, timber resources and forest land, and fish resources - with the 2025 and 2008 SNA recordings to illustrate the differences. A text box with a summary of key recommendations concludes the chapter.

References

[14] European Commission (2013), European System of Accounts (ESA), https://doi.org/10.2785/16644.

[1] European Commission et al. (2025), “System of National Accounts 2025”, white cover version, New York, United States, https://unstats.un.org/unsd/nationalaccount/docs/2025_SNA_Pre-edit.pdf.

[3] Eurostat (2024), “European Forest Accounts Handbook”, https://ec.europa.eu/eurostat/documents/3859598/19764075/KS-GQ-24-015-EN-N.pdf/b70bb6bc-57eb-8074-dad7-edab3144482e?version=2.0&t=1733398613839.

[4] Eurostat and OECD (2015), Eurostat-OECD compilation guide on land estimation, https://ec.europa.eu/eurostat/documents/3859598/6893405/KS-GQ-14-012-EN-N.pdf.

[12] SNA Update (2023), AI.1 Valuation principles and methodologies, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[8] SNA Update (2023), WS.10 Valuation of Mineral and Energy Resources, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[9] SNA Update (2023), WS.11 Guidance note on the treatment of renewable energy resources as assets, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[11] SNA Update (2023), WS.12 Environmental Classifications, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[6] SNA Update (2023), WS.6 Accounting for the Economic Ownership and Depletion of Natural Resources, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[7] SNA Update (2023), WS.8 Accounting for Biological Resources, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[10] SNA Update (2023), WS.9 Recording of Provisions, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

[5] SNA Update (2021), Work programme for updating the 2008 SNA, https://unstats.un.org/unsd/nationalaccount/SNAUpdate/Work_Programme_2008_SNA_Update.pdf.

[13] United Nations (2013), Framework for the Development of Environment Statistics, UNDESA.

[2] United Nations et al. (2014), System of Environmental-Economic Accounting 2012 — Central Framework, United Nations, https://seea.un.org/sites/seea.un.org/files/seea_cf_final_en.pdf.

Notes

← 1.  The guide does not cover institutional aspects of accounts compilation such as the development of an implementation strategy, stakeholder engagement, or quality assurance, for which guidance exists elsewhere, see for instance: https://unstats.un.org/unsd/nationalaccount/impUNSD.asp. The guide also does not cover the collection or development of environment statistics for which other guidelines exist such as the Framework for the Development of Environment Statistics (United Nations, 2013[13])

← 2.  Moreover, the EFA handbook is consistent with the European System of Accounts (ESA 2010) (European Commission, 2013[14]), not with the forthcoming revised ESA.

← 3.  Non-renewable mineral and energy resources.

← 4.  https://unstats.un.org/unsd/nationalaccount/Consolidated_SNA_RA.asp.

← 5.  The full list is available at: https://unstats.un.org/unsd/nationalaccount/SNAUpdate/GuidanceNotes.asp.

← 6.  The depletion group was later combined with the subsoil assets group as there was considerable overlap in terms of membership and topics.

← 7.  The fish resources group met twice, while the other groups met four or five times over this period.