The “Plan for Deepening the Reform of Party and State Institutions” clearly states that the Ministry of Natural Resources will assume, in a unified manner, the responsibilities of being the owner of all natural resource assets owned by the people, as well as the unified responsibility for regulating land use and carrying out ecological protection and restoration. It will also oversee the development, utilization, and protection of natural resources. To effectively fulfill the duties of being the owner of all natural resource assets held by the people and establish a unified regulatory system for natural resources, the primary task is to set up an accounting system for natural resource assets and accelerate the preparation of balance sheets for natural resources.

　　1. The Urgency of Implementing Unified Accounting for Natural Resource Assets

　　 ◆ The primary task of implementing unified oversight of natural resources is to assess various types of natural resource assets according to uniform standards. “ Get a clear picture of your assets. ” Conduct unified accounting.

　　 ◆ To ensure the effective realization of ownership rights over natural resources owned by all the people and to guarantee the preservation and appreciation of these assets, we must first accurately account for the quantity, quality, value, and changes in natural resource assets owned by all the people.

　　 ◆ Spatial planning and use control of various natural resources require accounting and evaluation of the status of protection and development utilization of these resources. Leading cadres must earnestly fulfill their responsibilities for managing natural resource assets and protecting the ecological environment.

　　 ◆ Establishing a management system for state-owned assets urgently requires the swift development of an asset accounting system, framework, standards, and methodologies that cover all natural resources, as well as the implementation of information technology tools such as establishing a database of natural resource assets.

　　Before this round of institutional reform, natural resources were managed in a fragmented manner. Land and mineral resources, water resources, forest resources, grassland resources, marine resources, and other types of natural resources were scattered across various competent departments, lacking unified planning for the protection and development of these resources and failing to establish a cohesive regulatory framework. To implement unified oversight of natural resources, the primary task is to conduct standardized, unified accounting of all types of natural resource assets according to consistent criteria.

　　This is an urgent need to unify the exercise of the responsibilities of the owner of natural resource assets owned by all the people. At present, some prominent issues in China’s ecological and environmental protection are, to a certain extent, linked to imperfections in the institutional framework. One of the underlying reasons is that the entity responsible for ownership of natural resource assets owned by all the people has not been clearly defined, and the rights and interests of such owners have not been effectively implemented. In response to this issue, the Third Plenary Session of the 18th CPC Central Committee decided to call for the establishment of a sound national system for managing natural resource assets. The overarching approach is to separate the roles of owner and manager and to ensure that each matter is managed by a single department, thereby fully implementing the ownership of natural resource assets owned by all the people and establishing a unified system for exercising the responsibilities of the owner of these assets. Therefore, the “Plan for Deepening Reform of Party and State Institutions” proposes that the Ministry of Natural Resources should be tasked with unifying the exercise of the responsibilities of the owner of natural resource assets owned by all the people—a move aimed at strengthening the management of state-owned natural resource assets. “ The doorman ” To fulfill it well. “ The doorman ” The responsibility is to ensure the effective realization of ownership rights over natural resources owned by all the people and to guarantee the preservation and appreciation of these assets. To begin with, we must clearly account for all natural resource assets owned by the entire population—thoroughly identifying the quantity, quality, value, and changes in various types of natural resource assets, including land, mineral deposits, water flows, forests, mountains, grasslands, wastelands, marine areas, and tidal flats. Only by fully accounting for all types of natural resources... “ Family assets ” Get a clear understanding to provide comprehensive asset management. “ Resource inventory account, ecological gain-and-loss account, management performance account ” Only then can natural resources be allocated efficiently, maximizing the returns from resource assets.

　　This is an urgent need for establishing a spatial governance system. The “Suggestions of the CPC Central Committee on Formulating the 13th Five-Year Plan for National Economic and Social Development” proposes that, “ Establish a spatial governance system at the city- and county-level administrative divisions, comprising spatial planning, land-use regulation, off-duty audits of natural resource assets for leading cadres, and differentiated performance assessments. ” After various natural resources have been protected and developed in accordance with spatial planning and land-use control regulations, the natural resources authorities need to conduct accounting and evaluation of the status of their protection and development. These results can be used by relevant departments for off-duty audits of natural resource assets held by leading cadres and for differentiated performance assessments, enabling a comprehensive evaluation of how these cadres fulfill their responsibilities in managing natural resource assets. This will help clarify accountability, strengthen oversight, and encourage leading cadres to earnestly carry out their duties in managing natural resource assets and protecting the ecological environment, thereby establishing and perfecting a comprehensive spatial governance system.

　　This is an urgent need for establishing a management system for state-owned assets. The "Opinions of the CPC Central Committee on Establishing a System for the State Council to Report to the Standing Committee of the National People's Congress on the Management of State-Owned Assets" clearly stipulates that the State Council shall annually report to the Standing Committee of the National People's Congress on the management of state-owned assets, with a special report focusing on the management of state-owned natural resources—including the total amount of natural resources, optimizing the spatial layout of land development, improving ecological environment quality, promoting major institutional reforms related to ecological civilization, and the protection and utilization of natural resources. It also calls for accelerating the preparation of comprehensive government financial reports and balance sheets for natural resources, organizing thorough inventories, verification, and assessment of state-owned assets, standardizing methodologies and requirements, and establishing a comprehensive database of state-owned assets. This necessitates that the natural resources authorities promptly establish asset accounting systems, frameworks, standards, and methodologies covering all types of natural resources, as well as information technology tools such as a natural resources asset database.

　　In short, carrying out unified accounting of natural resource assets is an essential component of fulfilling the duties of the owner of all natural resource assets belonging to the people and of implementing unified oversight over these resources—indeed, it is an urgent task that cannot be delayed.

　　2. Practical Exploration of Preparing Natural Resource Balance Sheets

　　 ◆ Preparing a balance sheet of natural resources is an important method for accounting for natural resource assets and represents a significant institutional exploration in China’s efforts to advance ecological civilization.

　　 ◆ The concept and tasks of the natural resource balance sheet were first proposed in connection with off-duty audits of natural resource assets for leading cadres, calling for the prior accounting of land, forests, and water resources that play critical ecological roles.

　　 ◆ The preliminary pilot work has initially developed a basic methodology for physical accounting of natural resource balance sheets and identified the weak links in the current statistical survey and monitoring system for natural resources.

　　Preparing a balance sheet for natural resources is an important method for accounting for natural resource assets. It represents a bold attempt to apply accounting principles in the management of natural resource assets and constitutes a significant institutional exploration as China advances its ecological civilization construction. Preparing a balance sheet for natural resources is a brand-new research topic, and it is essential to understand the origins of this task and its relevant background.

　　2013 Year 11 In the month, the "Decision of the CPC Central Committee on Several Major Issues Concerning Comprehensively Deepening Reform" proposed: “ Explore the development of natural resource balance sheets, implement off-duty audits of natural resource assets for leading cadres, and establish a lifelong accountability system for ecological and environmental damage. ” This is the first time that a central document has introduced the concept and tasks of a natural resource balance sheet, linking it to off-duty audits of natural resource assets for leading cadres.

　　2015 In recent years, the CPC Central Committee and the State Council have successively issued the "Opinions of the CPC Central Committee and the State Council on Accelerating the Promotion of Ecological Civilization Construction" and the "Overall Plan for Reform of the Ecological Civilization System," clearly outlining guidelines on how to prepare balance sheets for natural resource assets. “ Develop guidelines for preparing natural resource balance sheets, establish accounting methods for assets and liabilities related to water resources, land resources, forest resources, and other natural resources, set up physical quantity accounting accounts, clarify classification criteria and statistical standards, and conduct regular assessments of changes in natural resource assets. Carry out pilot programs for natural resource balance sheets at the city and county levels, account for the physical quantities of major natural resources, and publicly release the accounting results. ” Two important documents for the first time put forward table-setting goals and tasks, requiring that land, forests, and water resources with significant ecological functions be calculated and accounted for in advance.

　　2015 Year 11 Moon , The General Office of the State Council has issued the "Pilot Program for Preparing Balance Sheets of Natural Resource Assets," deciding to carry out the pilot program in places such as Huairou, Beijing. 8 Pilot programs have been launched in various regions, outlining the guiding principles, primary objectives, and fundamental principles for table preparation. The programs also specify key content, basic methodologies, division of responsibilities, and coordination mechanisms for the pilot initiatives. These guidelines serve as the foundational framework for the pilot work, marking the transition of table preparation efforts from theoretical discussion to practical exploration.

　　To implement the decisions and arrangements of the Party Central Committee and the State Council, the National Bureau of Statistics, together with the former Ministry of Land and Resources and other relevant agencies, ... 7 The department jointly developed the “Pilot System for Natural Resource Balance Sheets (Preparation Guidelines),” which specifies requirements for land, forests, and water. 3 The scope of accounting for physical quantity accounts of germplasm resources, statistical forms, calculation methods, classification criteria, and indicator explanations. 2017 At the end of the year, 8 The pilot regions have reported on the past. 5 The region’s natural resource balance sheet for the year summarized the pilot work. 2018 Year 3 The National Bureau of Statistics, in collaboration with various departments, has prepared... 2015 National Natural Resources Balance Sheet for the Year.

　　Through preliminary pilot studies and related work, the preparation of natural resource balance sheets has achieved phased results: First, a basic methodology for physical accounting of natural resource balance sheets has been preliminarily established. Asset accounts for land resources have been compiled, including tables on the stock and changes in land resources, tables on the quality grades and changes in cultivated land, tables on the quality grades and changes in cultivated land, and tables on the quality grades and changes in grasslands. Asset accounts for forest resources have also been compiled, including tables on the end-of-period stock and changes in forest resources, annual change tables for forest resources, and tables on the quality and changes in forest resources. Asset accounts for water resources have been prepared, including tables on the stock and changes in water resources, tables on the quality of water resources, and tables on the quality of the aquatic environment. A trial account for mineral resources has been compiled as well. Second, the preparation of... 2015 The national balance sheet of natural resources for the year, including both physical and quality-based indicators, has essentially provided a comprehensive grasp of land, forests, and water. 3 The quantity and quality of natural resource data. Third, some research institutions and local authorities have, based on physical accounting of natural resources, independently explored value-based accounting methods and applied these approaches to tasks such as off-duty audits of natural resource assets for leading cadres. Fourth, we have identified the weak links in the current statistical, survey, and monitoring system for natural resources.

　　3. Preparing a balance sheet for natural resources faces four major challenges.

　　 ◆ Inconsistent classification standards for physical quantities of natural resources lead to significant discrepancies in resource data across different statistical frameworks, and the survey cycles fail to meet the requirement for annual updates.

　　 ◆ There is currently no unified standard for calculating the value of natural resources, and neither the academic community nor the practical sector has reached a consensus on how to comprehensively understand the ecological value of natural resources.

　　 ◆ Currently, the accounting system does not differentiate based on the nature of ownership—whether it is collectively owned or owned by the entire population—thus failing to meet the requirements for accounting responsibilities related to natural resource assets owned by the entire population.

　　 ◆ How the accounting of natural resource assets and liabilities can be linked with natural resource regulation, and whether the accounting results can be directly used for off-duty audits of natural resource assets involving leading cadres—these questions have not been thoroughly studied.

　　Preparing a balance sheet for natural resources is an important institutional exploration for establishing a system of accounting for natural resource assets. Currently, there are no unified norms or standards either domestically or internationally. At present, the preparation of such balance sheets mainly faces challenges in four areas:

　　First, there is a lack of uniformity in the statistical classification standards for physical quantities of natural resources. According to the requirements of the Pilot Program, the classification system used for compiling balance sheets of natural resource assets should, in principle, adopt national standards. Where no national standards have yet been established, industry standards may be temporarily applied. From the pilot program’s experience, we’ve found that the same type of resource is often classified under different standards. For example: The “Classification of Current Land Use” developed by the former Ministry of Natural Resources and the “Forestry Classification” developed by the former Forestry Department have different classification criteria for forest land; similarly, the “Regulations on Quality Grading of Agricultural Land” developed by the former Ministry of Natural Resources and the “Quality Grade of Cultivated Land” developed by the former Ministry of Agriculture use different classification criteria for cultivated land quality. Moreover, the classification standards for water resources developed by the former Ministry of Water Resources and those developed by the former Ministry of Environmental Protection are also inconsistent. This inconsistency in classification standards leads to significant differences in resource data obtained from various statistical approaches. At the same time, regarding the frequency of resource surveys, while land resource data collected by the former Ministry of Natural Resources can be updated annually, data on resources such as forests and water are... 5 Year even 10 Conducting a census once a year cannot meet the requirement for annual updates.

　　Second, a unified standard for calculating the value of natural resources has yet to be established. Relevant central documents have not addressed this issue. “ Natural resource assets ” and “ Natural resource liabilities ” The connotation and extension of natural resources have yet to be clearly defined. There is no consensus within either the academic community or the practical field regarding how to comprehensively recognize the ecological value of natural resources, and the accounting methods remain immature—this, too, poses a significant challenge in quantifying the value of natural resources. The main issues surrounding the valuation of natural resource assets center on: whether all natural resources can be valued quantitatively; whether natural resources that do not directly generate economic value should be included in the scope of asset accounting; and whether natural resources that have not yet entered market transactions—and the pricing methods currently available for them—are truly objective. As for liabilities related to natural resources, the primary concerns are: 3 Standards for asset recognition: The first approach defines the external negative effects—such as pollution and environmental degradation—that arise when natural resources are incorporated into economic activities as liabilities; this can be understood as the “environmental loss liability” perspective. The second approach defines the consumption and depletion of natural resources occurring during their integration into economic activities as liabilities; this can be understood as the “resource depletion liability” perspective. The third approach defines as liabilities those portions of natural resource development and utilization that exceed management red lines—for example, volumes exceeding total volume controls, planned directive management, mandatory indicators, or the carrying capacity of resources and the environment; this can be understood as the “management red-line liability” perspective. Regarding the equity of natural resource owners, many research institutions tend to define the residual interests in resources owned or controlled by the entities holding rights to these natural resources as owner’s equity; this can be understood as the net assets of natural resources.

　　Third, the natural resource balance sheet does not take into account ownership relationships. The Pilot Program proposes that the accounting of natural resource assets does not involve ownership relations. In China, natural resources are under a public ownership system, encompassing both state-owned and collectively-owned assets. Among these, property rights to arable land, forest land, grassland, and construction land include both state-owned and collectively-owned forms; whereas property rights to water resources, mineral resources, and marine areas are exclusively state-owned. Currently, the accounting system does not differentiate between state-owned and collectively-owned property rights, thus failing to meet the requirements for accounting responsibilities related to state-owned natural resource assets. This shortcoming needs to be addressed and refined in the next phase of work.

　　Fourth, the natural resource balance sheet has not been effectively integrated with natural resource regulatory efforts. The Pilot Program explicitly states that we must adhere to the fundamental principle of holistic design, incorporating the natural resource balance sheet into the ecological civilization institutional framework and aligning it with major systems such as the red-line management of resources, environment, and ecology; the control over property rights and use of natural resource assets; off-duty audits of natural resource assets for leading cadres; and accountability for ecological and environmental damage. While the National Bureau of Statistics has focused its efforts on accounting methodologies, table designs, and data collection, it has yet to conduct in-depth research on how the accounting work can be linked with natural resource regulation or whether the accounting results can be directly used in off-duty audits of natural resource assets for leading cadres.

　　4. Accelerate the establishment of a natural resource asset accounting system centered on balance sheet preparation.

　　 ◆ Conduct a comprehensive and unified survey of all types of natural resources according to uniform standards, promote the integration of resource surveys with property rights registration, clarify the ownership status of each type of natural resource, and establish a set of authoritative data.

　　 ◆ Asset accounting should not be limited to natural resources owned by the entire people; rather, it must cover all natural resources and comprehensively reflect changes in their asset status as well as their development, utilization, and conservation efforts.

　　 ◆ Gradually expand the scope of accounting for natural resource balance sheets, establish a reporting system for natural resource asset accounting, and explore the application of accounting results to spatial governance systems.

　　 ◆ Asset accounting can be carried out first for resources with a higher degree of market-based allocation, following the principle of classification. Liability accounting can focus on those aspects of natural resource development and utilization that exceed the management red lines.

　　 ◆ Preparing a balance sheet for natural resources is an important component of natural resource accounting. The mechanisms for preparing the natural resource balance sheet should be promptly adjusted and improved.

　　Currently, the establishment of a unified accounting system for natural resource assets has already laid a solid foundation, including an accounting framework, basic data, and grassroots practices. Going forward, in accordance with the responsibilities of the Ministry of Natural Resources, we must further refine the accounting system and methodologies and make every effort to promote the preparation of balance sheets for natural resource assets.

　　On the one hand, we will carry out a comprehensive and unified survey of natural resources. We will standardize the classification criteria for all types of natural resources, ensuring that each resource has only one set of classification standards. Based on these unified standards, we will conduct a coordinated survey of all types of natural resources, thereby establishing a reliable and authoritative dataset for resource surveys. Building upon the annual land-use change survey, we will strive to extend this approach to cover all natural resources in annual change surveys. We will also promote the integration of resource surveys with property rights registration, clearly defining the ownership status of each type of natural resource and thoroughly mapping out the assets of natural resources owned by the state as well as those owned collectively, along with their respective changes. This will provide a solid data foundation for asset accounting. It is important to emphasize here that asset accounting must not be limited solely to natural resources owned by the state; rather, it must encompass all natural resources. This is a key requirement for the unified supervision of natural resources.

　　On the other hand, improve the natural resource balance sheet. According to... “ First individual items, then the overall picture; first physical quantities, then value-based measures; first stock levels, then flows. ” Based on the relevant principles, we will refine the existing physical and quality indicators for individual resource types. We will gradually expand the scope of natural resource balance sheet accounting and explore incorporating mineral resources, marine resources, and wild flora and fauna resources into the accounting framework. We will select certain regions to conduct pilot programs for valuing natural resources, promote theoretical research on asset accounting, and lay down both theoretical foundations and practical experience for value-based accounting. In terms of asset accounting, we can prioritize resources with a higher degree of market-oriented allocation according to classification principles; for liability accounting, we can focus on those parts of natural resource development and utilization that exceed management redlines. We will advance the reform of the paid-use system for natural resources, establish and improve monitoring systems for transaction prices in public resource markets—including mining rights markets, mineral product markets, land markets, water rights markets, and forest rights markets—to provide a price basis for value-based accounting. We will set up a natural resource asset accounting reporting system: during the preparation of the natural resource balance sheet, we will concurrently prepare supplementary reports such as the natural resource asset evaluation report and the natural resource conservation, development, and utilization report, comprehensively reflecting changes in natural resource assets as well as their conservation, development, and utilization status. We will also study how to apply the accounting results to spatial governance systems.

　　In addition, we should refine and improve the working mechanisms for compiling the balance sheets of natural resources. Following this round of institutional reform, the Ministry of Natural Resources has taken charge of integrated governance of the “mountains, rivers, forests, farmlands, lakes, and grasslands” system, unifying resource surveys and property rights registration. The scope of resource surveys now fully covers—and even expands upon—the existing accounting framework for natural resource balance sheets. Compiling natural resource balance sheets is an essential component of natural resource accounting and is inherently integral to the unified regulation of natural resources. Therefore, we should promptly adjust and enhance the working mechanisms for compiling these balance sheets.