China Securities Journal reported (reporter: Yan Zhou) China Government Network 11 Moon 17 It was announced recently that the General Office of the State Council has issued the “Pilot Program for Preparing Balance Sheets of Natural Resource Assets.”

The proposal suggests that by exploring the preparation of natural resource balance sheets, we can promote the establishment and improvement of a scientific and standardized statistical survey system for natural resources. We will strive to gain a clear understanding of the stock and changes in natural resource assets, thereby providing an information base, monitoring and early-warning mechanisms, and decision-support services for advancing ecological civilization, effectively protecting natural resources, and ensuring their sustainable use.

According to the plan, the pilot work will begin from... 2015 Year 11 From the beginning of the month to 2016 Year 12 The end of the month is divided into two phases: Phase One ( 2015 Year 11 Moon to 2016 Year 7 By the end of the month, the pilot regions will carry out the collection, compilation, and review of basic data on natural resources, and conduct supplementary surveys as necessary, and prepare... 2011 the balance sheets of natural resources for each calendar year since the year; Phase II ( 2016 Year 8 Moon to 12 (month), the pilot regions will submit their pilot reports and put forward recommendations for revising and improving the statistical survey system for natural resources as well as the framework for compiling balance sheets of natural resources.

Based on pilot experience and further investigation and research, the National Bureau of Statistics, in collaboration with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Environmental Protection, the Ministry of Water Resources, the Ministry of Agriculture, the National Audit Office, and the State Forestry Administration, is studying ways to expand the scope of natural resource balance sheet accounting. 2018 Prepare the balance sheet of natural resource assets by the end of the year.

The full text is as follows:

Pilot Program for Preparing Natural Resource Balance Sheets

This plan is formulated to implement the decisions and deployments of the Party Central Committee and the State Council, explore the preparation of natural resource balance sheets, and guide pilot regions in developing replicable and scalable experience in preparing such balance sheets.

I. General Requirements

(1) Guiding Ideology.

Earnestly implement the spirit of the 18th National Congress of the Party and the Second, Third, Fourth, and Fifth Plenary Sessions of the 18th Central Committee, guided by Deng Xiaoping Theory, “ The Three Represents ” Guided by the Important Thought and the Scientific Outlook on Development, we will thoroughly implement the spirit of General Secretary Xi Jinping’s series of important speeches. In accordance with the decisions and deployments of the Party Central Committee and the State Council on accelerating the advancement of ecological civilization, we will comprehensively strengthen the foundational work of statistical surveys and monitoring of natural resources. We will adhere to a practice-based approach—reforming and summarizing experiences simultaneously—and gradually establish and improve the system for compiling balance sheets of natural resource assets and liabilities.

(2) Main objectives.

By exploring the preparation of natural resource balance sheets, we will promote the establishment and improvement of a scientific and standardized statistical survey system for natural resources. We will strive to gain a clear understanding of the stock and changes in natural resource assets, thereby providing an information base, monitoring and early-warning mechanisms, and decision-support tools for advancing ecological civilization, effectively protecting natural resources, and ensuring their sustainable use. In accordance with the requirements of this plan, we will pilot the preparation of natural resource balance sheets, put forward recommendations for refining the natural resource statistical survey system, and accumulate experience that can inform the development of a comprehensive plan for preparing natural resource balance sheets.

(3) Basic Principles.

1. Adhere to integrated design. Incorporate the preparation of natural resource balance sheets into the institutional framework for ecological civilization, and align them with major systems such as the red-line management of resources, environment, and ecology; the property rights and use control of natural resource assets; off-duty audits of natural resource assets for leading cadres; and accountability for ecological and environmental damage. Based on the natural laws and organic interconnections of ecosystems, comprehensively design the accounting of balance sheets for key natural resources.

2. Highlight key accounting priorities. Guided by the requirements of ecological civilization development and the expectations of the general public, prioritize the accounting of natural resources with significant ecological functions, and continuously refine the accounting system in practice.

3. Pay close attention to quality indicators. The preparation of a natural resource balance sheet should not only reflect changes in the scale of natural resources but also, and more importantly, reflect their quality status. By combining quality indicators with quantitative indicators, we can more comprehensively and systematically capture changes in natural resources and their impacts on the ecological environment.

4. Ensure authenticity and accuracy. In accordance with the requirements of high quality, pragmatism, and effectiveness, establish and improve a comprehensive system of statistical monitoring indicators for natural resources. Fully leverage modern technological means and rule-of-law approaches to enhance statistical monitoring capabilities and the quality of statistical data, thereby ensuring that basic data and all figures in the natural resource balance sheet are authentic and accurate. The preparation of the natural resource balance sheet does not involve issues related to ownership or management of natural resources.

5. Draw on international experience. Based on China’s needs for ecological civilization development, its endowments of natural resources, and its existing statistical monitoring capabilities, refer to the System of Environmental-Economic Accounting developed by international organizations such as the United Nations. 2012 Adopting international standards such as those mentioned above, drawing on advanced international experiences, and through exploration and innovation, we will establish a scientific, standardized, and effective system for preparing natural resource balance sheets.

II. Pilot Program Content

In response to the practical needs of natural resource conservation and management, we will first conduct accounting for natural resources that play critical ecological roles. The content of China’s natural resource balance sheet primarily includes land resources, forest resources, and water resources. The land resource balance sheet mainly covers land use conditions such as cultivated land, forest land, and grassland, as well as the distribution and changes in the quality grades of cultivated land and grassland. The forest resource balance sheet includes the standing stock volume and per-unit-area standing stock volume of natural forests, planted forests, and other types of forest resources. The water resource balance sheet covers surface water and groundwater resources, as well as the distribution and changes in water quality grades. Based on this plan, pilot regions will separately collect and verify relevant basic data, study key issues such as data sources and data quality control, and explore methods for preparing natural resource balance sheets. Pilot regions may, in light of local conditions, also explore the preparation of balance sheets for mineral resources.

III. Basic Methods

The natural resource balance sheet reflects the stock levels of natural resources at the beginning and end of the accounting period, as well as the changes that occurred during the accounting period. The accounting period is each calendar year. 1 Moon 1 Date to 12 Moon 31 Day. Under the theoretical framework of natural resource accounting, and based on statistical survey data from natural resource management authorities, prepare a balance sheet that reflects the physical stock and changes in major natural resources.

The fundamental balance relationship of the natural resource balance sheet is: beginning-of-period stock. + Increase for this period - The reduction for this period equals the ending stock. The beginning and ending stocks are derived from natural resource statistical surveys and administrative records; the beginning stock for this period is precisely the ending stock from the previous period. There are two main categories of factors influencing changes in natural resources during the accounting period: first, anthropogenic factors, such as changes in forest resource assets caused by afforestation and logging; second, natural factors, such as changes in water resource assets resulting from precipitation and evaporation. Due to significant differences in their natural characteristics and varying relationships with the economy, each type of natural resource has its own unique patterns and causes of increase and decrease. Based on these factors affecting natural resource changes, and using data from administrative records and statistical surveys, we establish a statistical ledger for tracking increases and decreases in natural resources and promptly report the relevant indicators.

The classification system used for preparing the balance sheet of natural resources shall, in principle, follow national standards. Where no national standards have yet been established, industry standards may be temporarily adopted. The definitions, scope, and calculation methods for the indicators involved in preparing the balance sheet of natural resources shall be formulated jointly by the National Bureau of Statistics and relevant departments.

IV. Pilot Regions

Based on the representativeness of natural resources and the relevant working foundations, pilot work is being carried out in Hulunbuir City, Inner Mongolia Autonomous Region; Huzhou City, Zhejiang Province; Loudi City, Hunan Province; Chishui City, Guizhou Province; and Yan'an City, Shaanxi Province to prepare balance sheets of natural resource assets and liabilities.

V. Schedule

Pilot work from 2015 Year 11 From the beginning of the month to 2016 Year 12 The end of the month will be divided into two phases.

Phase 1 ( 2015 Year 11 Moon to 2016 Year 7 By the end of the month, the pilot regions will carry out the collection, compilation, and review of basic data on natural resources, and conduct supplementary surveys as necessary, and prepare... 2011 Balance sheets of natural resources for each calendar year since [year]. If basic data are unavailable, balance sheets of natural resources for only one or two years may be prepared.

Phase Two ( 2016 Year 8 Moon to 12 (month), the pilot regions will submit their pilot reports and put forward recommendations for revising and improving the statistical survey system for natural resources as well as the framework for compiling balance sheets of natural resources.

Based on pilot experience and further investigation and research, the National Bureau of Statistics, in collaboration with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Environmental Protection, the Ministry of Water Resources, the Ministry of Agriculture, the National Audit Office, and the State Forestry Administration, is studying ways to expand the scope of natural resource balance sheet accounting. 2018 Prepare a balance sheet for natural resources by the end of the year. At the same time, conduct research and explore technical approaches for quantifying the value of major natural resource assets and liabilities.

VI. Guarantee Measures

The pilot work of compiling natural resource balance sheets is of great significance and must be given high priority, carefully implemented, and ensured to achieve tangible results.

First, strengthen leadership and ensure accountability. Establish a pilot guidance group for preparing the balance sheet of natural resource assets, composed of personnel from the National Bureau of Statistics, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Environmental Protection, the Ministry of Water Resources, the Ministry of Agriculture, the National Audit Office, and the State Forestry Administration. Also establish an expert advisory panel for preparing the balance sheet of natural resource assets to provide relevant theoretical, policy, and technical advice. The governments of the pilot regions shall set up organizational and coordinating bodies for the pilot work and establish effective communication and coordination mechanisms. The statistical departments will take the lead in undertaking the technical work related to preparing the balance sheets of natural resource assets in the pilot regions. Relevant departments should actively support and cooperate with the pilot work, participate in research on related issues, and provide the basic data required for preparing the balance sheets. It is essential to enhance communication and coordination with the departments responsible for assessing the performance of leading cadres and conducting pilot audits of natural resource assets upon their departure from office, ensuring that these efforts are advanced in tandem and effectively creating synergies. The people's governments of the provinces (or autonomous regions) where the pilot regions are located, along with their respective departments, should strengthen leadership and coordination efforts.

Second, we must strengthen information sharing and lay a solid foundation. Statistical agencies should enhance communication with departments in charge of natural resources—including land and resources, environmental protection, water conservancy, agriculture, and forestry—and carefully study and clarify the status of underlying data required for compiling balance sheets of natural resource assets and liabilities. Where relevant departments already possess such data, they should proactively and promptly provide it to statistical agencies for use in preparing these balance sheets. If existing data are insufficient to meet requirements, departments should actively explore solutions and, if necessary, conduct supplementary surveys. We must also strengthen the review, assessment, and inspection of data quality to ensure that the underlying data are authentic and reliable. To better leverage the outcomes of the pilot programs and facilitate public oversight, the balance sheets of natural resource assets and liabilities prepared as part of the pilot programs in the pilot regions should, in principle, be made publicly available.

During the pilot period, the National Bureau of Statistics will work with relevant departments to visit the pilot regions, provide guidance and conduct research, and help address any issues that arise during the pilot phase. Please promptly report to the National Bureau of Statistics any significant issues or successful practices identified during the pilot process.