Macro-economic Dependencies on Ocean Ecosystems

TG-2.2 Section 2: Compiling Indicators from Ocean Accounts Applied Draft

Circular ID	TG-2.2
Version	8.0
Badge	Applied
Status	Draft
Last Updated	May 2026

1. Outcome

1This Circular provides guidance on compiling indicators of macro-economic dependencies on ocean ecosystems, so that national accountants and ocean managers can quantify how national economies rely on marine and coastal natural capital. Understanding these dependencies is a precondition for assessing nature-related risks at the national and sectoral level, for informing development finance decisions, and for tracking progress towards sustainable ocean economies. The guidance addresses three decision use cases: (1) quantifying GDP dependency on ocean ecosystem services to support national nature-related risk assessment, (2) supporting national ocean economy reporting within medium-term expenditure frameworks as described in TG-1.1 Budget Processes, and (3) tracking economic dependencies against SDG 14.7 on sustainable use of marine resources. The compilation approach integrates perspectives from the System of National Accounts and SEEA Ecosystem Accounting. Enterprise-level application of dependency indicators (including alignment with TNFD, the LEAP process, IFRS S1, and CSRD) is addressed separately in TG-1.11 Private Sector and Ocean Accounts.

2The conceptual framework and key components of Ocean Accounts are introduced in TG-0.1 General Introduction, whilst the relevant statistical standards are described in TG-0.2 Standards Overview. Asset accounting foundations for marine natural capital are addressed in TG-3.1 Asset Accounts, and the identification and measurement of ocean economy sectors is covered in TG-3.3 Economic Activity Relevant to the Ocean. This Circular directly supports the integration of ocean accounts with national budget processes (TG-1.1), enterprise-level private-sector application (TG-1.11), the compilation of ocean economy structural indicators (TG-2.5 Ocean Economy Structure), and investment analysis (TG-2.6 Ocean Investment).

2. Requirements

1This Circular requires familiarity with:

• 2TG-0.1 General Introduction to Ocean Accounts — for the conceptual framework and key components of Ocean Accounts, including the relationship between ecosystem assets, ecosystem services, and economic activity
• 3TG-0.2 Overview of Relevant Statistical Standards — for the international statistical standards underpinning ocean accounting, including SNA 2025, SEEA Central Framework, SEEA Ecosystem Accounting, and classification systems
• 4TG-3.1 Asset Accounts — for methodology on compiling physical and monetary accounts for marine environmental assets and ecosystem assets that underpin service provision
• 5TG-3.2 Flows from Environment to Economy — for methodology on compiling physical supply and use tables for marine ecosystem services, required for Step 4 of the compilation procedure (Steps 1—3 can be completed independently)
• 6TG-3.3 Economic Activity Relevant to the Ocean — for guidance on identifying, classifying, and measuring ocean economy sectors using thematic and extended accounting principles

3. Guidance Material

1The guidance draws primarily on the ocean accounts framework in SEEA Ecosystem Accounting¹ and the treatment of ecosystem services and economic activity in the 2025 SNA².

3.1 Conceptualising Economic Dependencies

1Economic dependencies on nature represent the reliance of economic actors on the flows of benefits from environmental assets and ecosystem services. The SEEA EA frames this as “the share of economy-wide value added that is dependent on ecosystem services” (SEEA EA 2021, para 11.4). In the context of ocean accounting, dependencies encompass the reliance of economic units (enterprises, industries, households, and governments) on the services provided by marine and coastal ecosystems. Enterprise-level dependency concepts, including the TNFD definition of dependencies and the “dependency pathway” construct, are addressed in TG-1.11 Private Sector and Ocean Accounts Section 3.1.

Dependency pathways

1A dependency pathway describes the mechanism through which an economic activity relies on ecosystem services and the underlying environmental assets, and how observed or potential changes in those assets affect economic outcomes. At the macro level, pathways link changes in marine ecosystem condition (compiled following TG-2.1 Biophysical Indicators) to sectoral output through the channels summarised in Table 3.1.1 below.

Service Channel	Description
Provisioning services	Direct extraction of biomass (fisheries, aquaculture feed sources), water, and genetic resources from marine ecosystems.
Regulating services	Coastal protection from storms and erosion, water quality regulation, climate regulation through carbon sequestration, waste treatment.
Cultural services	Recreation, tourism, aesthetic and spiritual values associated with marine environments.

2For the relationship between the SNA production boundary and ecosystem service measurement, see TG-0.2 Standards and Frameworks. Conventional accounts and ecosystem accounting are complementary on this point. The ocean economy as measured in conventional accounts captures only the direct production activities, whilst the full dependency on marine ecosystems extends to the regulating and cultural services that support but are not priced in market transactions.

Types of dependency

1Dependencies may be categorised by their relationship to the economic unit, as summarised in Table 3.1.2 below. Figure 2.2.1 illustrates how the same ecosystem service can be depended upon in different ways by different sectors (direct, indirect, or systemic), and how only direct production is captured in measured ocean-economy GVA.

Figure 2.2.1 Marine ecosystem assets supply services on which economic sectors depend through direct, indirect, and systemic pathways. Line style: solid = direct production input; dashed = supply-chain; dotted = systemic. Only direct enters ocean GVA/employment. Source: TG-2.2 Macro-economic Dependencies on Ocean Ecosystems, draft v8, §3.1 (dependency typology), §3.4 Table 2 (sector--ecosystem dependency matrix), §3.6 (resilience); ecosystem service supply and use per SEEA EA 2021, §11.4 and Table 6.3.

Dependency Type	Description
Direct dependencies	Occur when an economic activity directly uses ecosystem services as inputs to production — marine fishing depends directly on fish stocks; coastal aquaculture depends on water quality and larval supply; maritime tourism depends on visual amenity and recreation services from healthy marine environments.
Indirect dependencies	Occur when an economic activity relies on inputs from other sectors that themselves depend on ecosystem services — a seafood restaurant depends indirectly on healthy fish stocks through its purchase of inputs from the fishing industry; a coastal hotel depends indirectly on waste assimilation services that maintain the water quality tourists expect.
Systemic dependencies	Represent the economy-wide reliance on ecosystem services that underpin the functioning of multiple sectors simultaneously — coastal protection services benefit all economic activities in flood-prone coastal zones; climate regulation services benefit all sectors affected by temperature and weather patterns.

2Dependency type governs how far an indicator can be measured directly. Direct dependencies can be measured through the supply and use framework, whilst indirect and systemic dependencies require extended analysis such as input-output modelling.

3.2 Compilation Procedure for Ocean Economy Dependency Indicators

1The compilation of macro-level dependency indicators follows a step-by-step procedure that extracts ocean economy sub-matrices from national supply and use tables and links them to ecosystem service accounts. The procedure adapts the methodology described in TG-2.5 Ocean Economy Structure Section 3.7 for the specific purpose of dependency measurement.

Step 1: Identify ocean economy industries

1Using the industry classification concordance in TG-3.3 Economic Activity Relevant to the Ocean Section 3.3 (Table 2), identify all ISIC classes that constitute the ocean economy. For each class, determine whether it is wholly ocean-dependent (ocean ratio = 1.0) or partially ocean-related (ocean ratio < 1.0). Document the classification choices and ocean ratios applied. The list of ocean industries should include as a minimum:

• 2ISIC 0311 Marine fishing
• 3ISIC 0321 Marine aquaculture
• 4ISIC 5011, 5012 Sea and coastal water transport
• 5ISIC 0610, 0620 Offshore petroleum and natural gas extraction (ocean ratio: country-specific, with an onshore/offshore split required. Consult national energy statistics or EITI data, and see TG-3.10 Offshore Energy Accounts for split methodology)
• 6ISIC 3511 (partial) Electric power generation — offshore component
• 7ISIC 1020 Fish processing
• 8ISIC 3011, 3012 Shipbuilding
• 9ISIC 5222 Water transport support services
• 10ISIC 5510 (partial) Coastal accommodation

Step 2: Extract ocean economy sub-matrix from national SUTs

1From the balanced national supply and use tables for the most recent complete accounting period, extract the columns corresponding to identified ocean economy industries. The extracted use table provides:

• 2Output by ocean industry
• 3Intermediate consumption by ocean industry
• 4Gross value added (GVA) by ocean industry
• 5Employment by ocean industry

6For partially ocean-related industries, apply the ocean economy ratios determined in Step 1 to the extracted values.

7Deriving ocean ratios for partially ocean-related industries. Where national data are available, compilers should derive ocean ratios using one of the following approaches in order of data availability:

1. 8Establishment-level survey data — if national statistical offices conduct establishment surveys that separately identify ocean-related and non-ocean-related activity within a mixed industry, use those establishment proportions directly.
2. 9Revenue or turnover splits from enterprise administrative data — where enterprise tax records or business registers record ocean-specific revenue (e.g., coastal accommodation revenue from beach-facing versus inland properties), use the revenue share as the ocean ratio.
3. 10Expert judgement with reference ranges — where no administrative data exist, apply expert judgement with documented reasoning. The SF-MST tourism ratio methodology provides an analogous approach: tourism supply tables use expert-derived attribution proportions for industries that partially serve tourists. For fish processing, a starting range of 0.70—0.90 (reflecting typical industry structures in small island and coastal states) is reasonable, and for coastal accommodation, 0.30—0.50. Ratios outside these ranges require additional justification.

11In all cases, ocean ratios must be documented in metadata and revisited when new business register or survey data become available.

12Employment measure. Where the worked example and indicators in this Circular refer to “employment in persons”, the primary measure is headcount (number of persons employed in the reference period), consistent with what is typically available from labour force surveys in most national statistical systems. Compilers should additionally report full-time equivalent (FTE) employment where source data permit, in line with the SNA 2025 recommendation that FTE is preferred for comparability where part-time and seasonal work is significant (SNA 2025, Chapter 16 on Labour). The FTE measure is particularly relevant for coastal accommodation, tourism-related, and small-scale fisheries activity, where part-time and seasonal patterns are pronounced. The chosen measure must be applied consistently to both numerator (ocean-attributable employment) and denominator (total national employment) of the employment share indicator, and documented in metadata.

Step 3: Calculate ocean economy direct GVA

1Sum the gross value added across all ocean industries, applying ocean economy ratios where appropriate:

2$$\text{Ocean Economy Direct GVA} = \sum_i (\text{GVA}_i \times \text{Ocean ratio}_i)$$

3Note on double-counting. Summing GVA (rather than output) across ocean industries avoids double-counting of intermediate transactions by construction. The supply-use identity ensures that inter-industry purchases are already netted out of each industry’s value added: fish processing (ISIC 1020) purchases raw fish catch as an intermediate input, and that purchase is deducted from fish processing output when GVA is computed. Both marine fishing (ISIC 0311) and fish processing (ISIC 1020) should therefore be included in the ocean economy sub-matrix, and their combined GVA correctly captures the value added at each stage of the seafood supply chain without double-counting.

Step 4: Compile ecosystem service accounts

1Following the methodology in TG-3.2 Flows from Environment to Economy Section 3.3, compile physical supply and use tables for marine ecosystem services. Table 3.2.1 below lists the minimum accounts that should be recorded.

Service Category	Minimum Accounts to Record
Provisioning services	Fish provisioning (tonnes biomass), aquaculture support.
Regulating services	Carbon sequestration (tonnes carbon), coastal protection (hectares protected), water purification (volumes filtered).
Cultural services	Recreation (visitor-days).

2The supply table attributes ecosystem service flows to marine ecosystem types (coral reefs, mangroves, seagrass, pelagic, other). The use table attributes ecosystem service flows to economic users (fisheries, aquaculture, tourism, coastal properties, households, rest of world).

Step 5: Link ocean industries to ecosystem service use

1Map each ocean industry to the ecosystem services it uses. This mapping establishes which ecosystem service accounts provide inputs to which ocean economy production accounts. The sector-ecosystem dependency matrix in Section 3.3 (Table 2) provides the starting point for this mapping, which should be refined using national data.

Step 6: Derive contribution ratios

1Calculate the ocean economy contribution ratio as:

2$$\text{Ocean Economy Contribution Ratio} = \frac{\text{Ocean Economy Direct GVA}}{\text{National GVA at basic prices}} \times 100$$

3Note that this measures the output contribution of ocean industries rather than dependency in the strict sense. A true dependency measure would quantify how much economic output would be lost if ecosystem services were withdrawn (see Sections 3.4-3.6 for fuller dependency analysis). For budget applications described in TG-1.1 Budget Processes Section 3.3 (Table 1), this ratio populates the “Ocean share” column for the GDP contribution indicator.

4For sector-specific analysis, compute contribution ratios by industry:

5$$\text{Industry Contribution Ratio}_i = \frac{\text{Ocean Industry GVA}_i}{\text{National GDP}} \times 100$$

3.3 Ocean Economy Share of GDP

1The most widely used indicator of macro-economic dependence on the ocean is the share of Gross Domestic Product (GDP) attributable to ocean-related economic activities. The SEEA EA describes the ocean economy as measured “in terms of the contribution of the main ocean-related activities (e.g. marine transportation, coastal tourism, marine fishing, offshore mineral and gas extraction) to the national economy”³.

2Following Steps 1—6 in Section 3.2, the key indicators derived from this measurement approach are:

Indicator	Description
Ocean economy GVA	The sum of gross value added across all ocean industries (in national currency units).
Ocean economy share of GDP	Ocean economy GVA as a percentage of national GDP.
Ocean economy employment	Total persons employed or full-time equivalent positions in ocean industries.
Ocean economy share of employment	Ocean employment as a percentage of total national employment.

3For detailed guidance on industry classification and supply and use table compilation, see TG-3.3 Economic Activity Relevant to the Ocean.

Worked example: Ocean economy contribution ratio compilation

1To illustrate the compilation of the ocean economy share of GDP using the step-by-step procedure, consider a country (“Country B”) with national GVA at basic prices of 50,000 million currency units (used here as the denominator consistent with the Step 6 formula, and for reporting against the commonly cited GDP figure, apply the bridge: GDP = GVA + taxes on products − subsidies on products, per SNA 2025 Chapter 6) and total employment of 10 million persons. Following Steps 1-6 above, the compiler has identified ocean industries, extracted data from national SUTs, and applied ocean ratios to partially ocean-related industries.

2Table 1: Ocean economy sub-matrix extracted from national SUTs (Country B, million currency units)

Ocean Industry (ISIC)	Output	Intermediate Consumption	GVA	Employment (persons)	Ocean ratio
Marine fishing (0311)	500	200	300	32,000	1.00
Marine aquaculture (0321)	300	150	150	22,000	1.00
Sea transport (5011, 5012)	1,200	800	400	36,000	1.00
Fish processing (1020)	400	280	120	18,000	0.80
Port services (5222)	600	350	250	24,000	0.90
Coastal accommodation (5510)	800	500	300	95,000	0.40
Other ocean industries	400	250	150	30,000	0.60
Column totals (pre-ratio)	4,200	2,530	1,670	257,000	—
Ocean-attributable totals	—	—	1,381	182,000	—

3Applying the ocean ratios to the partially ocean-related industries (fish processing, port services, coastal accommodation, other), the ocean-attributable GVA is:

• 4Fish processing: 120 x 0.80 = 96
• 5Port services: 250 x 0.90 = 225
• 6Coastal accommodation: 300 x 0.40 = 120
• 7Other ocean industries: 150 x 0.60 = 90

8Total Ocean Economy Direct GVA = 300 + 150 + 400 + 96 + 225 + 120 + 90 = 1,381 million currency units.

9Ocean Economy Contribution Ratio = 1,381 / 50,000 x 100 = 2.76% (of national GVA at basic prices).

10Total ocean-attributable employment = 32,000 + 22,000 + 36,000 + (18,000 x 0.80) + (24,000 x 0.90) + (95,000 x 0.40) + (30,000 x 0.60) = 32,000 + 22,000 + 36,000 + 14,400 + 21,600 + 38,000 + 18,000 = 182,000 persons.

11Ocean employment share = 182,000 / 10,000,000 x 100 = 1.82%.

12As noted in Section 3.2 Step 6, this contribution ratio measures direct output. It does not capture the full extent of economic dependency on ocean ecosystem services.

Interpretation considerations

1The ocean economy share of GDP measures the direct contribution of ocean industries to national production but does not capture the full economic dependency on ocean ecosystems. Several interpretive considerations apply:

2The indicator measures production, not dependency. An economy where ocean industries contribute 5% of GDP may still have much larger dependencies on ocean ecosystem services if, for example, coastal protection services prevent flooding that would damage assets across multiple non-ocean sectors.

3Ecosystem services largely remain outside GDP. Following the SNA production boundary, many ecosystem services (including regulating services such as coastal protection and waste treatment) are not recorded as economic output⁴. The SEEA EA notes that “measurement of ecosystem services, in both physical and monetary terms, through ecosystem accounting complements the estimates of output based on the SNA production boundary”⁵. Compilers should present ocean economy GDP alongside ecosystem service accounts, so that economic relationships with the ocean are represented in full. For guidance on ecosystem service flow accounts, see TG-2.4 Ecosystem Goods and Services.

4Structural change affects interpretation over time. As economies develop, the composition of GDP shifts, typically towards services and away from primary industries. A declining ocean economy share may reflect diversification rather than reduced absolute dependence. Presenting both absolute values (ocean economy GVA in currency units) and relative shares provides fuller context.

5Comparison across countries requires adjustment. Countries differ in their ocean area (EEZ size), coastal population, and economic structure. Per capita or per square kilometre normalisations may support international comparison, though care is needed in interpretation.

SDG 14.7.1 Application

1SDG Indicator 14.7.1 measures sustainable fisheries, aquaculture, and marine tourism as a proportion of GDP, with reporting obligations specifically for Small Island Developing States (SIDS) and Least Developed Countries (LDCs). The custodian agency is FAO, and the methodology is documented in FAO SDG 14.7.1 metadata (FAO, 2023).⁶

2The ocean economy compilation described in this section supports SDG 14.7.1 reporting, though the scope differs. SDG 14.7.1 covers fisheries (ISIC 0311, 0321), fish processing (ISIC 1020), and marine tourism (relevant portions of ISIC 55, 79, 93), which is narrower than the full ocean economy. Compilers producing a full ocean economy GVA estimate following Steps 1—6 should extract the SDG 14.7.1 sub-total as follows:

1. 3From the ocean industry GVA compilation, identify the rows for marine fishing (ISIC 0311), marine aquaculture (ISIC 0321), fish processing (ISIC 1020, applying the same ocean ratio), and coastal/marine tourism (applicable ISIC sub-classes with ocean ratios applied).
2. 4Sum the ocean-attributable GVA for these rows only.
3. 5Divide by national GDP (not GVA at basic prices) as required by the FAO custodian-agency methodology, applying the GDP bridge (GDP = GVA + taxes on products − subsidies on products, per SNA 2025 Chapter 6) to the denominator.
4. 6Report the resulting percentage to FAO via the national SDG reporting mechanism.

7Where full SUT data are not available, FAO accepts estimates based on national fisheries statistics (production value from SOFIA data) combined with available tourism satellite account data. Compilers in SIDS and LDCs should consult the FAO SDG 14.7.1 metadata for the simplified reporting template applicable where full SUT infrastructure is absent.

3.4 Ecosystem Service Dependencies

1Beyond the ocean economy share of GDP, a fuller understanding of macro-economic dependencies requires analysis of how specific sectors depend on specific ecosystem services. The SEEA EA identifies the objective “to identify the share of economy-wide value added that is dependent on ecosystem services”⁷.

Sectoral dependency mapping

1For marine ecosystem services, the key dependencies by sector include:

2Marine fishing (ISIC 0311): Depends directly on provisioning services (fish biomass, genetic diversity), regulating services (nursery habitat maintenance, water quality), and supporting services (primary production, nutrient cycling). Stock assessment accounts track the sustainable yield that represents the capacity of the ecosystem to maintain provisioning services over time⁸. For detailed guidance on fish stock assessment and asset accounting, see TG-3.1 Asset Accounts, Section 3.3.1.

3Marine aquaculture (ISIC 0321): Depends on water quality regulation (maintaining conditions suitable for cultured species), waste assimilation (capacity of surrounding waters to absorb aquaculture effluents), and provisioning services (wild-caught feed inputs, larval supply for some species). Condition accounts for coastal ecosystems provide indicators of the capacity to support aquaculture⁹. See TG-3.9 Aquaculture Accounts for detailed methodology.

4Coastal and marine tourism (portions of ISIC 55, 79, 93): Depends on cultural services (recreation, aesthetic values, spiritual and educational values) and regulating services (water quality for swimming and diving, beach stability from sediment regulation). Ecosystem condition variables such as water clarity, coral cover, and beach erosion rates indicate the capacity to support tourism services¹⁰.

5Maritime transport (ISIC 50): Depends primarily on spatial access (the ocean as a medium for transport) but also on regulating services that maintain navigable conditions (sediment regulation in ports and channels, storm frequency affecting operations).

6Offshore oil and gas (ISIC 06): Depends on mineral and energy resources rather than ecosystem services as such, though operations may be affected by marine conditions and weather extremes influenced by climate regulation services. See TG-3.10 Offshore Energy Accounts for specific guidance.

7Coastal communities and households: Depend on multiple services including provisioning (subsistence fishing, aquaculture), regulating (coastal protection from storms, flood regulation, water purification), and cultural services (recreation, cultural identity, spiritual values).

Sector-Ecosystem Dependency Matrix

1Table 2 provides a template dependency matrix summarising the principal relationships between ocean economic sectors and marine ecosystem services. The intensity ratings (high, medium, low) are qualitative and indicative, and should be adapted to national circumstances on the basis of available data and expert judgement. To support consistent application across compilers, the following descriptive anchors are used:

• 2High — the ecosystem service is an effectively non-substitutable input to the sector’s production process. Sustained loss or degradation of the service would materially impair the sector’s capacity to operate, and no close market substitute is available at comparable cost. Example: fish provisioning for marine capture fisheries.
• 3Medium — the sector relies on the service for normal operation but the service is partially substitutable (through engineered alternatives, alternative inputs, or relocation), or affects only part of the sector’s output. Loss or degradation would raise costs or reduce productivity without eliminating the activity. Example: coastal protection for coastal tourism infrastructure.
• 4Low — the service has a marginal influence on the sector’s production. Degradation would have limited direct economic consequence for the sector, although it may affect impact pathways or other sectors.

5These anchors are descriptive rather than quantitative thresholds. Compilers with access to ecosystem service accounts compiled following TG-2.4 Ecosystem Goods and Services are encouraged to replace the qualitative ratings with measured service flows and dependency coefficients where data permit. Ratings should be documented in metadata, with the evidence base (literature, expert panel, or measured accounts) recorded for each cell.

6Table 2: Sector-Ecosystem Dependency Matrix

Economic Sector	Provisioning	Regulating	Cultural	Primary Ecosystem Types
Fisheries	Fish provisioning (high)	Nursery habitat (high); Climate regulation, nutrient cycling (medium — varies by fishing method and geographic zone)	Low—High (country-specific; see TG-3.3 for subsistence and cultural fisheries)	Shelf, seagrass, mangrove
Coastal tourism	Low	Coastal protection (medium)	Recreation (high)	Reef, beach
Aquaculture	Water supply (high)	Water quality (high)	Low	Coastal
Shipping	Low	Low	Low	Pelagic
Offshore energy	Low	Low	Low	Pelagic, deep-sea

7Note: Ratings reflect typical commercial-scale oceanic contexts and must be adapted to national circumstances, fishing methods, and geographic zones. In Pacific Island and coastal states, cultural dependencies for fisheries may be high.

8The ecosystem types column supports spatial linking of dependency analysis with ecosystem extent and condition accounts. That linkage identifies which specific marine areas underpin each sector’s economic activity. Countries should refine ratings using quantitative data from ecosystem service accounts compiled following TG-2.4 Ecosystem Goods and Services and condition accounts described in TG-2.1 Biophysical Indicators.

Quantifying dependencies

1The quantification of ecosystem service dependencies in monetary terms remains methodologically challenging. The SEEA EA presents approaches for valuing ecosystem services but notes that valuation chapters are “internationally recognized recommendations” rather than full statistical standards¹¹. The international methodological consensus, set out in the SEEA EA Monetary Valuation of Ecosystem Services and Assets for Ecosystem Accounting technical recommendations¹², ranks valuation methods by their proximity to observed market prices, from most to least preferred:

1. 2directly observed values;
2. 3resource-rent and productivity-change methods;
3. 4revealed-expenditure methods (averting behaviour, travel cost, hedonic pricing) and expected or simulated-expenditure methods (replacement cost, avoided damage cost, simulated exchange value);
4. 5stated-preference and opportunity-cost methods, which are not preferred for accounting.

6Compilers should not replicate the method-by-method, ecosystem-service-by-ecosystem-service guidance set out in that technical report and in TG-1.9 Valuation, but should use the same precedence order to select among methods.

7Decision tree — selecting a valuation method for a dependency entry

8For each ocean dependency to be valued, work through the following steps and stop at the first that applies:

1. 9Directly observable market price for the service? — e.g. individually transferable quota (ITQ) prices for wild fish access, voluntary carbon market prices for blue-carbon sequestration. If yes, use the directly observed value.
2. 10Service embodied in a marketed output with an extractable resource rent? — typical for provisioning services with commercial harvest (fisheries, aquaculture feed). Apply the resource-rent / residual-value method.
3. 11Service supports a marketed output through productivity? — e.g. mangrove nursery contribution to commercial fisheries yield, coral reef contribution to dive tourism throughput. Apply the productivity-change method.
4. 12Service substitutes for or avoids a market expenditure?
   • 13Revealed-expenditure data available (travel cost, hedonic property values, averting behaviour): preferred branch.
   • 14Otherwise: expected/simulated expenditure — replacement cost, avoided damage cost, simulated exchange value. Document the counterfactual.
5. 15None of the above applicable? Note that stated-preference and opportunity-cost methods are not preferred for accounting. If used, adjust to an exchange-value basis before recording.

16Applied to the dependency categories already identified in this Circular, the precedence order maps as follows:

Dependency category	Dominant valuation branch	Notes
Fisheries provisioning	Step 2 (resource rent)	Step 1 where ITQ markets exist
Aquaculture water-quality support	Step 4 (replacement cost of water treatment)	Step 3 where productivity functions are estimable
Coastal protection (mangrove, reef)	Step 4 (avoided damage cost)	Step 3 where productivity-on-coastal-property data exist
Recreation and tourism	Step 4 revealed (travel cost)	Hedonic pricing for coastal property amenity
Carbon sequestration (blue carbon)	Step 1 (carbon market price) or Step 4 (social cost of carbon)	Choice depends on whether voluntary or compliance markets apply
Genetic and bioprospecting	Step 5 (no preferred method; flag)	Typically excluded from core monetary accounts

17Worked examples for each step are in the SEEA EA monetary valuation technical recommendations¹² and in TG-1.9 Valuation.

3.5 Supply Chain Dependencies

1Supply chain linkages mean that industries which do not directly interact with marine ecosystems may nevertheless depend on ocean ecosystem services through their purchases of intermediate inputs.

Input-output analysis

1Input-output analysis provides the framework for tracing dependencies through supply chains. Building on the supply and use tables described in TG-3.3 Economic Activity Relevant to the Ocean, symmetric input-output tables enable calculation of the linkages summarised in Table 3.5.1 below.

Linkage	Description
Backward linkages	The extent to which an industry’s production depends on inputs from other industries, including ocean industries.
Forward linkages	The extent to which an industry’s outputs are used as inputs by other industries, including ocean industries.
Multiplier effects	The total economy-wide impact of changes in final demand for ocean products, including direct, indirect, and induced effects13.

2Economic output multipliers differ from ecosystem service dependency coefficients and should not be conflated. Output multipliers measure economic interdependence between industries (how a change in final demand for one industry’s output propagates through the supply chain), but they do not directly measure ecosystem service dependency. To produce total-requirements-based ecosystem dependency estimates, ecosystem intensity factors from the dependency matrix (Section 3.4) should be applied to the columns of the Leontief inverse matrix: this yields the total ecosystem service content (direct and indirect) embodied in a unit of final demand for each product. The multiplier analysis retained in this section serves as supplementary economic impact context. It is not a primary dependency measure and should not be reported as such.¹⁴

Environmentally extended input-output analysis

1Environmentally extended input-output tables (EE-IOT) add environmental data to economic input-output tables, and support analysis of embodied environmental flows through supply chains¹⁵. For ocean dependencies, this approach allows quantification of the measures summarised in Table 3.5.2 below.

Measure	Description
Embodied ecosystem service dependencies	The total ecosystem services required directly and indirectly to produce a unit of final demand for any product.
Footprint indicators	The total ecosystem service “footprint” of final consumption, capturing dependencies throughout domestic and international supply chains.
Sectoral dependency intensity	The ecosystem service intensity (per unit of output or value added) for each sector, incorporating supply chain dependencies.

2The SEEA AFF notes that “environmentally extended input-output tables have been developed for individual countries, and are increasingly being developed to cover several countries; they are referred to as multiregional input-output tables, which also incorporate connections between countries through international trade in goods and services”¹⁶.

3EE-IOT compilation is technically demanding and data-intensive. It requires integration of detailed environmental satellite data with balanced supply and use tables at a fine level of industry disaggregation. Countries should consider the following progression: begin with the basic supply chain mapping described below, advance to partial quantification using available input-output data as the ocean economy thematic account matures, and pursue full EE-IOT compilation only when the requisite environmental and economic data infrastructure is in place. Compilers can use the following entry criteria to assess their current phase:

• 4Phase 1 entry — ocean industry list compiled following Section 3.2 Step 1, with no balanced supply and use tables available at the national level.
• 5Phase 2 entry — balanced SUTs available at minimum ISIC section level, enabling extraction of the ocean economy sub-matrix per Section 3.2 Steps 2—3.
• 6Phase 3 entry — symmetric input-output tables available and environmental satellite data compiled for at least one marine ecosystem service (e.g., fish provisioning in physical units from TG-3.2 or TG-3.3 source data).

7Countries that meet Phase 2 entry criteria can begin partial quantification of supply chain dependencies using available IO data. Countries at Phase 1 should focus on qualitative mapping and building the SUT infrastructure before pursuing EE-IOT.

Practical considerations

1For countries beginning ocean economy accounting, practical approaches to supply chain dependency analysis include:

1. 2Qualitative mapping: Identify the principal industries that supply inputs to ocean industries, and the principal industries that purchase outputs from ocean industries, without full quantification
2. 3Partial quantification: Use available input-output data to estimate the share of selected industries’ intermediate purchases that originate from ocean industries
3. 4Case-study analysis: Focus on specific supply chains of policy interest (e.g., the seafood supply chain from catch to consumption) rather than economy-wide analysis

3.6 Risk and Resilience Indicators

1Dependency indicators compiled under this Circular populate the macro inputs to nature-related risk assessment at the national and sectoral scale.

Nature-related risks (macro view)

1At the macro level, the dependency-to-risk translation distinguishes three broad risk categories, mirroring the taxonomy used at enterprise level (see TG-1.11 Private Sector and Ocean Accounts Section 3.2 for the TNFD-aligned enterprise treatment):

• 2Physical risks to national output arising from ecosystem degradation — e.g. fishery collapse, loss of coastal protection from reef or mangrove degradation, decline in tourism attractiveness from water quality deterioration, aquaculture disruption from harmful algal blooms. These risks may be acute (short-term events such as oil spills or cyclones) or chronic (gradual changes such as ocean acidification or warming).
• 3Transition risks to national output arising from policy, market, technology, reputational, or liability shifts as economies adjust to nature pressures.
• 4Systemic risks arising from ecosystem tipping points, cascading service losses, and the simultaneous materialisation of physical and transition risks across coupled sectors.

5For the conceptual definitions of these risk categories, their sub-types, and their application to enterprise-level disclosure, refer to TG-1.11 Private Sector and Ocean Accounts. The role of Ocean Accounts in this Circular is to provide the national/sectoral baseline data against which these risks are assessed.

Developing resilience indicators

1Resilience indicators assess the capacity of economic systems to absorb shocks and adapt to changes in ecosystem service provision. Building on ocean accounts, relevant indicators include:

2Ecosystem condition indicators from condition accounts provide early warning of capacity to maintain service provision. These indicators are addressed in detail in TG-2.1 Biophysical Indicators, following SEEA Ecosystem Accounting (2021), Chapter 5, and include:

• 3Coral reef condition indices indicating coastal protection and tourism support capacity
• 4Fish stock status relative to sustainable yield indicating provisioning service sustainability
• 5Water quality parameters indicating capacity to support multiple uses

6A computable composite for this category is the ocean ecosystem condition index derived by applying the composite scoring methodology in TG-2.1 Biophysical Indicators to the marine ecosystem types relevant to each ocean sector. The index values from TG-2.1 can be used directly as condition-state inputs to resilience assessment.

7Economic diversity indicators assess the extent to which economies depend on single ecosystem services or sectors. A computable indicator for sectoral concentration is the Herfindahl-Hirschman Index (HHI) for ocean economy GVA:

8$$\text{HHI} = \sum_{i=1}^{n} s_i^2$$

9where sᵢ is sector i’s share of total ocean economy GVA (expressed as a proportion, 0 to 1) and n is the number of ocean industries. HHI ranges from 1/n (maximum diversification) to 1 (full concentration in a single sector). Values above 0.25 indicate high concentration. Additional diversity measures include:

• 10Geographic concentration of ocean-dependent activity (share of ocean GVA from a single coastal region or EEZ sub-zone)
• 11Diversity of export products from ocean industries

12Adaptive capacity indicators assess the ability to respond to ecosystem changes. A computable indicator is the alternative livelihood investment ratio:

13$$\text{ALI ratio} = \frac{\text{Public investment in alternative livelihoods for ocean-dependent communities}}{\text{Total public expenditure on ocean sectors}}$$

14expressed as a percentage. Data sources are national budget classifications and expenditure reviews. Additional adaptive capacity indicators include:

• 15Technology and infrastructure for monitoring and response
• 16Governance capacity for adaptive management

17These computable indicators are proposed as starting points for national implementation. They are not mandatory standards and should be adapted to national data availability and policy priorities.

18Resilience indicator development for ocean accounts is an emerging area where specific indicator recommendations are expected to evolve as implementation experience accumulates. Countries currently piloting ocean accounts (including Thailand, Vietnam, and Fiji) are generating practical experience with resilience measurement that will inform future revisions of this guidance. In the interim, compilers are encouraged to draw on the condition indicator framework in TG-2.1 Biophysical Indicators as the primary basis for assessing ecosystem resilience, supplemented by economic diversity and adaptive capacity indicators where data permit.

Integration with financial disclosure

1The adoption of nature-related financial disclosure frameworks creates demand for dependency and risk indicators that can inform corporate and financial sector reporting. The 2025 SNA notes that “a related area of work is the assessment of enterprises’ exposure to environmental risks, including climate risks and risks emerging from declines in nature and biodiversity”¹⁷.

2National Ocean Accounts compiled following this Circular provide the population-level inputs that enterprise-level disclosure draws on. For private-sector application (including TNFD-aligned disclosure, the LEAP process, IFRS S1, and CSRD double-materiality reporting), see TG-1.11 Private Sector and Ocean Accounts. For development finance and multilateral appraisal contexts, see TG-1.7 OA and Multilateral Development Finance.

4. Acknowledgements

1Authors: [To be confirmed]

2Reviewers: [To be confirmed]

5. References

Footnotes

1. 1

   United Nations (2021). System of Environmental-Economic Accounting — Ecosystem Accounting (SEEA EA). Statistical Papers Series F No. 124. New York: United Nations. Chapter 13, Section 13.5 on Accounting for the ocean. ↩

2. 2

   United Nations et al. (2025). System of National Accounts 2025. New York: United Nations. ST/ESA/STAT/SER.F/2/Rev.6. ↩

3. 3

   SEEA EA (2021), para 13.88: “The ocean economy is measured in terms of the contribution of the main ocean-related activities…to the national economy.” ↩

4. 4

   United Nations et al. (2025). System of National Accounts 2025, Chapter 6 on the production boundary applied in the integrated framework. ↩

5. 5

   SEEA EA (2021), para 1.38. ↩

6. 6

   Food and Agriculture Organization of the United Nations (FAO) (2023). SDG Indicator 14.7.1 Metadata: Sustainable fisheries as a proportion of GDP in small island developing States, least developed countries and all countries. FAO custodian-agency metadata documentation. Rome: FAO. Covers sustainable fisheries, aquaculture, and marine tourism as a proportion of GDP for SIDS and LDCs. Primary empirical data source: FAO State of World Fisheries and Aquaculture (SOFIA) reports. ↩

7. 7

   SEEA EA (2021), para 11.4: Objective “to identify the share of economy-wide value added that is dependent on ecosystem services.” ↩

8. 8

   See TG-3.1, Section 3.3.1 on aquatic resource asset accounts and sustainable yield measurement. ↩

9. 9

   See TG-3.9 Aquaculture Accounts for detailed guidance. ↩

10. 10

    SF-MST (2024). Statistical Framework for Measuring the Sustainability of Tourism. See also TG-3.3 Section 3.4.4 on coastal tourism. ↩

11. 11

    SEEA EA (2021), Preface para 8: The UN Statistical Commission noted “outstanding methodological concerns related to chapters 8 to 11 on valuation.” ↩

12. 12

    United Nations Committee of Experts on Environmental-Economic Accounting (2022). Monetary Valuation of Ecosystem Services and Assets for Ecosystem Accounting — Final Official Draft. Technical recommendations supporting the SEEA Ecosystem Accounting. Chapters 3 (typology and method preference order) and 4 (tiered approach to valuing ecosystem services). This Circular references the tiered preference order from this report. Per-ecosystem-service valuation guidance is in TG-1.9 Valuation, not reproduced here. ↩ ↩²

13. 13

    SF-MST (2024), Section 3.7: “These indirect effects are not recorded in SF-MST but since the entries in SF-MST are organized to connect to entries for these other industries, the indirect effects can be estimated, often using input-output modelling techniques.” ↩

14. 14

    SF-MST (2024), Section 7.4 on measuring indirect effects. ↩

15. 15

    SEEA CF (2012), para 6.17 on environmentally extended input-output analysis. ↩

16. 16

    SEEA AFF (2018), para 1.54: “Environmentally extended input-output tables have been developed for individual countries, and are increasingly being developed to cover several countries.” ↩

17. 17

    United Nations et al. (2025). System of National Accounts 2025, Chapter 35, para 35.119. ↩