CAG to release report on natural resource accounting in November 2022

Source: The post is based on the article “CAG to release report on natural resource accounting in November 2022” published in Business Standard on 16th July 2022.

What is the News?

The Comptroller and Auditor General of India stated it will be coming up with a report on Natural Resource Accounting(NRA) by November 2022.

What is Natural Resource Accounting(NRA)?

Natural Resource Accounting is a process of estimating the value of natural resource depletion and environmental degradation due to economic activities.

The concept of NRA emerged to capture the intimate interplay between the various components of the natural environment and the economic progress of a country.

It is based on the concept – ‘measurement of a resource leads to its better management’. 

Origin of NRA Concept

The need for the NRA took its first step at the United Nations(UN) conference on Human Environment in 1970 when the relationship between economic development and environmental degradation was discussed for the first time. 

The Brundtland Commission, set up by the UN, articulated the idea of the close association between the environment and economic activities in 1987, which was followed up by environmental accounting and the Earth Summit at Rio de Janeiro in 1992. 

What are the initiatives taken globally for NRA?

The UN adopted the System of Economic and Environmental Accounting – Central Framework (SEEA – CF) in 2012 – which is the latest internationally accepted and adopted framework for resource accounting.

The UN General Assembly resolution titled, “Transforming our world; the 2030 agenda for sustainable development” (2016) which got the approval of more than 190 countries, requires the preparation of Natural Resource Accounts. India is a signatory to this resolution.

What are India Specific Initiatives for NRA?

NCAVES Project

Government Accounting Standards advisory board(GASAB) 

CAG of India is a member of an international body of Supreme Audit Institutions called WGEA (Working Group on Environmental Auditing) which suggested (2010) that the audit institutions should aid their countries to adopt Natural Resources Accounts.