6. Coordinating efforts for global monitoring of the physical economy
Goal: Global monitoring the physical economy
According to the International Resource Panel, natural resources accounting should become common practice to ensure that the Earth’s assets are utilised and valued properly. This in turn can lead to more robust forecasting and assessments of future material supply and demand .
Figure 6: Production and trade statistics harmonisation needs
Traditionally, governmental agencies monitor different aspects of the physical economy and no single institution has the mandate to monitor the physical economy as a whole. Often, assessments are project and site based and they ignore the cumulative global impact across the entire value chain. At present geological surveys collate mineral reserves and mine production flows, environmental protection agencies monitor specific waste and emission flows, while tax and statistical offices measure trade flows. These institutions have an overview of their own individual parts of the system, but, they do not see the totality of the system they operate within. In addition, many institutions often only operate on a national level, whilst the problems we are facing are global and therefore require global solutions.
The establishment of a stand-alone institution with a mandate to monitor the physical economy at the global level is an important essential goal. Such an institution, whether a new body or incorporated within an existing institution would have a major role to play in coordinating efforts amongst multiple players.
Recommendations
We call for the establishment of a high-level working group with the aim of evaluating institutional options to coordinate the monitoring of the global physical economy, including legal frameworks and data infrastructures. Our recommendation is endorsed by the International Resource Panel, which has suggested the need for an international coordinated action to establish a body with a similar role to that of the International Energy Agency10. Other organisation, such as the OECD, IEA, UNSD IGF, and UNECE could play an important role in establishing such a group.
Other initiatives, including the recommended World Forum on Raw Materials from the EU H2020 FORAM project and the International Raw Materials Observatory may also contribute to the development of the high-level working group.
The working group should also assess the need for linking material use to the use of energy and greenhouse gas emissions and help to coordinate efforts of reporting between the different governments.