PHARE Multi-beneficiary Statistical Co-operation Programme 2003 Eurostat Grant Contract No Czech Republic

Transcription

1 PHARE Multi-beneficiary Statistical Co-operation Programme 2003 Eurostat Grant Contract No Czech Republic Task 2 Data Collection: 5.1 Project on Environmental Accounting - B. Economy-wide material flow accounts FINAL REPORT Period covered: November 2004 November 2005 Ústí nad Labem Prague 1 November 2005 This project has been co-financed by the EU from the PHARE Multi-beneficiary Statistical Co-operation Programme

2 PROJECT COORDINATORS: Eva KRUMPOVÁ, specialist, Environmental Statistics Department Katarína MARKOŠOVÁ, specialist, Environmental Statistics Department Translation: Czech Statistical Office, International Cooperation Planning Section Co-operators from Environmental Statistics Department: Mirka Tůmová Libuše Šleisová Alena Pražáková Helena Buřtová Petra Macíková Soňa Horáčková Petra Borůvková Thank you very much to all those at relevant institutions who have taken part in work on project, and especially to Jan Kovanda and Tomáš Hák from the Charles University Environment Centre. 2

3 CONTENTS 1. INTRODUCTION TIMETABLE GOAL OF THE PROJECT PROJECT IMPLEMENTATION USED DOMESTIC EXTRACTION ACCOUNT PHYSICAL TRADE BALANCE ACCOUNT CONCLUSION ANNEXES...16 LIST OF ABBREVIATIONS

4 1. INTRODUCTION Most environmental problems are directly or indirectly related to the flow of materials in the economy. The goal of compiling economy-wide material flow accounts is the quantification of the overall demands of an economic system on materials. These demands can be expressed as input of materials into an economic system, their consumption or the overall waste flow arising from the economic system back into the environment. Until now, the compiling economy-wide material flow accounts and calculations of indicators arising from them have been based solely on voluntary agreements and have no legislative foundation. This applies generally to environmentally accounts as such. Nonetheless, economy-wide material flow accounts are one of the main modules for environmental accounts as defined by the specialised European Strategy for Environmental Accounting Task Force (ESEA Task Force) and recommended for regular and timely compilation. The ESEA Task Force was created by the Statistical Programme Committee of the European Commission in Apart from representatives of the European Commission (DG ENV, DG ECFIN), members of the Task Force also include representatives of the European Environment Agency (EEA). Within the framework of the objectives of the MB PHARE 2003 Data Collection Project, among the main models of environmental accounts, economy-wide material flow accounts are called one of the three priority areas (besides Air Emissions Accounts and Environmental protection expenditure and environmental industry accounts). Therefore, the CZSO has also decided to focus on these priority areas of environmental accounting in the immediate future, and within the framework of the MB PHARE 2003 Data Collection Project, to compile economy-wide material flow accounts and air emissions accounts. The compiling of economy-wide material flow accounts has also been handled successfully in the Czech Republic by the Charles 4

5 University Environment Centre (hereinafter CUEC ) within the framework of several Environment Ministry projects, and the methodology of compilation of material flow accounts under the conditions in the Czech Republic is already relatively advanced. The task of the CZSO was to tie in with the work of the CUEC and to initiate regular annual compilation and publication of selected economy-wide material flow accounts (hereinafter MFA ) and the indicators derived from them. Besides the providing of results obtained to Eurostat, there are currently plans for using MFA indicators (specifically the DMC indicator) for the Situation Report on Sustainable Development Strategy in the Czech Republic TIMETABLE - the project Economy-Wide Material Flow Accounts: 1. Project preparation (including the study of relevant methodologies) November and December Identification of relevant data resources for compiling selected economy-wide material flow accounts and calculation of related indicators January through March Creation of model tables for regular annual compiling of selected economywide material flow accounts March through April Collection of data needed for compiling selected economy-wide material flow accounts for 2004 March through September Adjustment of obtained data in accordance with the Eurostat methodology; revision of already existing timelines ( ) of selected economy-wide material flow accounts and related indicators March through October Preparation of a preliminary report on handling of the project June Participation at a three-day project workshop in Vienna - June Analysis of obtained and revised data of selected economy-wide material flow accounts ( ); calculation of related indicators August through October The situation report is compiled on the basis of section II/2 of Government Decree No. 1242/2004 on Sustainable Development strategy of the Czech Republic. The Sustainable Development strategy of the Czech Republic was approved in December

6 9. Presentation of the project methodology and preliminary results at international conferences (Economic and Social Contexts of Sustainable Development the Application of Environmental Accounting to the Micro- and Macro-Level: 5 6 September 2005, Brno; Environmental Accounting and Indicators of Sustainable Development: September 2005, Prague) 10. Preparation of a final project report; creation of a thematic publication focusing on environmental accounting October through November Presentation of the final report 30 November 2005 Within the framework of cooperation between the CZSO and the CUEC, regular meetings were organized between representatives of both institutions, at which there took place consultation on methodological issues and results attained. 3. GOAL OF THE PROJECT Among the main goals of the MB PHARE 2003 Data Collection Project portion focusing on economy-wide material flow accounts are: o following up on the work of the CUEC o securing and describing relevant data sources o revising data received from the CUEC o obtaining data required for compiling MFA for the Czech Republic in 2003 and 2004 o instituting the regular annual compilation of MFA for the Czech Republic o analyzing information gained and creating a publication focusing on environmental accounting o securing the practical use of obtained results at the national level (e.g. in the Report on the State of the Environment in the Czech Republic, in State Environmental Policy, etc.) 4. PROJECT IMPLEMENTATION 6

7 The Charles University Environment Centre within the framework of an Environment Ministry project compiled economy-wide material flow accounts for the first time in 2000 and The project covered the years 1990 through Within the framework of subsequent programs financed by the Environment Ministry and the Czech Grant Agency, the CUEC continued to compile this data for 2000 through The MFA for the Czech Republic were compiled according to the methodology standardized by Eurostat in 2001 in the manual Economy-wide Material Flow Accounts and Derived Indicators - a Methodological Guide. Within the framework of projects handled by the CUEC, a complete succession of MFA was complied, including used and unused domestic extraction, domestic processed and nonprocessed output, imports and exports and indirect flows relating to foreign trade. Within the framework of the project MB Phare 2003, cooperation was developed between the CZSO and the CUEC. The CZSO focused in the project on the compiling of indicators of Direct Material Input (DMI), Domestic Material Consumption (DMC) and Physical Trade Balance (PTB). From a methodological standpoint, these indicators are the best developed, and the attention of Eurostat is currently focusing on it (Material use in the European Union : Indicators and analysis, Eurostat, 2002 and Economy-Wide Material Flow Accounts and Indicators of Resource Use for the EU , Institute for Social Ecology, Faculty for Interdisciplinary Studies (IFF), Klagenfurt University, Vienna, June 2004). For the calculation of the aforementioned indicators, it is necessary to compile two basic material flow accounts, namely an account for used domestic extraction and a foreign trade account. Cooperation between the CZSO and the CUEC will continue after completion of the MB PHARE project. Within the framework of that cooperation, in the future the CUEC will focus on the part of the MFA that is not yet fully worked out methodologically. This mainly involves Net Addition to Stock (NAS), the calculation of indicators of output material flows, unused domestic extraction and indirect flows from foreign trade. In view of their vast experience with MFA, CUEC representatives provided CZSO representatives methodological support throughout project implementation. Meetings were organized regularly between representatives of both institutions, at 7

8 which there was consultation on methodological issues and attained results. For the needs of the CZSO, CUEC representatives provided CZSO representatives with compiled MFA for , as well as in part for Selected (see above) MFA for 2003 were compiled by the CUEC and the CZSO at the same time. Thereafter, the CZSO proceeded with the separate compilation of selected MFA and of indicators related therewith for Within the framework of the project, the CZSO tried to achieve the greatest possible compliance with the Eurostat methodology. In some cases with selected MFA there occurred a clarification of results obtained by the CUEC within the framework of previous projects (see above). For easier orientation in the given area and for effective annual compilation of selected MFA and related indicators, the CUEC has prepared for the use of the CZSO model tables. These model tables were already part of the preliminary project report. The tables, or the parts of them containing results (in metric tons) achieved during the project, are found in Annex No. 1. The CZSO decided to take over from the CUEC that is, to follow up on, adjust and further process the timeline of selected MFA and related indicators starting from 1993, with the birth of the independent Czech Republic. For each of the MFA accounts on which the CZSO is focusing, the following pages break down the main data sources needed for their completion, along with specification of the methodology of the CZSO as opposed to the former procedure of the CUEC, leading to greater comparability with the Eurostat methodology. 4.1 Used domestic extraction account Domestic used extraction is primarily divided into domestic used extraction of renewable and non-renewable resources. For each of those groups, CUEC has prepared a separate table for the use of the CZSO. The classification of resources used in the tables is based directly on the classification recommended by Eurostat in the methodology manual for compiling MFA. The extraction of non-renewable resources includes: Extracted fossil fuels and mineral raw materials (for more detailed classification, see Annex No. 1 table: Non-renewable Resources) 8

9 Data sources: : data taken from the CUEC, adjusted in cooperation with the Ministry of Industry and Trade and Geofond 2003: compiled in cooperation with the CUEC 2004: Ministry of Industry and Trade, Geofond Since 2005: Ministry of the Environment, Geology Committee Commentary: Data are provided in the reports GeO (MŽP) V3-01 and Hor (MPO) The GeO (MŽP) V 3-01 report provides data on exclusive extraction categorized by individual mineral deposits, while the Hor (MPO) 1-01 report gives data on exclusive and nonexclusive extraction categorized by extraction locations. Each year, the Czech Geological Service Geofond prepares the GeO (MŽP) V3-01 report for the Ministry of the Environment and the Hor (MPO) 1-01 report for the Ministry of Industry and Trade. Extraction is designated as exclusive if the owner of the mineral raw material is the state and, as nonexclusive if the owner of the mineral raw material is the landowner. Nonexclusive extraction is mainly of building stone, gravel, decorative stones and brick clay. The return of reports for nonexclusive extraction is circa 95%. Statistics have been provided for this nonexclusive extraction since , while figures on exclusive extraction have been available for decades. All entities with permits for mining activities should complete reports. A report is completed using the units that are traditionally used for individual kinds of raw materials (usually thousands of metric tons, or less frequently, metric tons or thousands of m 3 ). In May, summaries of data are issued by the Ministry of Environment in the Balance of Stock and by the Ministry of Industry and Trade in the Overview of Stock. Both publications, however, are intended solely for internal use. The CZSO has obtained data for from the Ministry of Industry and Trade. Representatives of the Ministry of Industry and Trade have suggested to 2 Within the framework of projects handled by CUEC for the needs of MFA, there are estimates for nonexclusive extraction for (estimate Czech Geological Service Geofond) 9

10 workers at the Czech Statistical Office that in coming years they take over data from the Balance of Stock of the Ministry of the Environment, Geology Committee. Specification of methodology as opposed to CUEC methods: o For , the conversion factor was adjusted for changing over natural gas from m 3 to t. Eurostat, 2002 is based on 0.85 t/1000 m 3, while Czech Geofond uses 1 t/1000 m 3. o Data on extraction of mineral raw materials in has been expanded to include extraction of mineral raw materials not previously included in the timeline (e.g. wallastonite); extraction of those mineral raw materials are not generally done each year. o As has already been said, the return of reports for nonexclusive extraction is approximately 95 %. For , then, the remaining 5 % was estimated in cooperation with the Czech Geological Service Geofond. The extraction of renewable resources includes: Biomass from agriculture reported by harvest statistics, Biomass from agriculture as a by-product of harvest, Biomass from grazing of agricultural animals, biomass from forestry, Biomass from other activities, biomass from fishing, biomass from hunting (for a more detailed categorization, see Annex No. 1, table Renewable Resources). Data sources: : data taken from the CUEC. Timelines were revised in cooperation with the agriculture statistics division of the CZSO and the Forestry and Game Management Research Institute 2003: compiled in cooperation with the CUEC Since 2004: agriculture statistics div. of the CZSO; Czech University of Agriculture Commentary: 10

11 1. Biomass from agriculture reported by harvest statistics CZSO 1.1. Cereals 1.2. Roots and tubers 1.3. Pulses 1.4. Oilcrops Other oilseeds includes: a sunflower for seeds, soy, mustard for seeds, flax, other oilseeds 1.5. Vegetables Vegetables covered areas: completed for , : estimated as the average for and since 2002 not determined separately (included under the harvest of individual types of vegetables) Fruit Raspberries for an estimate was made based on the dimensions of land (2001 area of harvest in ha: 215 ha, (harvest of agricultural products), area of fruit orchards in ha - Total (18.44 ha), (structural survey, 2003)). From 2001 to 2003 a linear decline was expected. For calculating of the harvest, the hectare yield of 2001 was used, i.e t/ha. Since 2004, an insignificant harvest of raspberries is expected Treenuts 1.8. Fibre crops 1.9. Other crops Forage from hayfield: since 2002 from permanent grassland; weighed as hay Decorative flowers: estimate ha of yield as alfalfa Seeds of vegetables: 2002 and 2003 = expert estimate from the CUEC and in 2004 = expert estimate from the CZSO between 2004/2003 the same percentage decline is expected as between 2003/2002. Seeds of flowers: In 2004/2003 the same year-on-year decline of harvest is expected as between 2002/2001 and 2003/2002 (i.e. a decline of ca. 2 % y/y). 11

12 2. Biomass from agriculture as a by-product of harvest source: CZSO Previous and subsequent crops not determined (e.g. mixes of grain and legumes) 3. Biomass from grazing of agricultural animals Included in the categories: fodder from permanent hayfields and fodder from pastures (under 1.9) 4. Biomass from forestry 4.1. Wood CZSO Bark Czech University of Agriculture calculation based on harvest of wood 5. Biomass from other activities Gathering of mushrooms, blueberries, raspberries, blackberries, cranberries, elderberries, medicinal herbs Czech University of Agriculture; Gathering of medicinal herbs , , estimates on the basis of data from 1994 and 1999; Honey and way CZSO. 6. Biomass from fishing Fishing of wild fishes - in , the CUEC included in this group the fish caught from ponds. According to the Eurostat methodology manual, however, this category only covers catching of wild fishes (seas, rivers, lakes). The CZSO has therefore excluded data on fishing from ponds from the years from MFA timelines. According to CZSO estimates, catches of wild fishes represent only a negligible percentage. 12

13 7. Biomass from hunting 7.1. Hunting of games Supplemented: sika game deer total, game deer total, wild mountain goat total, wild turkey, wild duck, wild goose. Quantity data (animals items) from the CZSO, forestry office. Conversion of items to metric tons was done by VÚLHM experts (estimated average weight for individual types of animals). 4.2 Physical trade balance account IMPORTS AND EXPORTS Data on imports and exports are taken from the Czech Statistical Office from the Foreign Trade Application. Within the framework of that application, records are kept of foreign trade both with EU and non-eu countries. Before the Czech entry into the EU (i.e. until 1 May 2004), data on foreign trade in the Czech Republic were recorded on the basis of a joint system for statistics of trade with goods between countries the uniform customs declaration (JCD), and since it was required, there was no non-response. There were no threshold values, only ca. CZK After entry of the Czech Republic into the EU (i.e. since 1 May 2004), the methodology has been greatly changed. Data on Czech foreign trade with non-eu countries are recorded within the framework of Extrastat. In that system, no major changes were made, except that instead of the JCD, the Uniform Administrative Document (JSD) is used. A second system of data collection for foreign trade statistics between the Czech Republic and EU Member States is Intrastat (if no customs declaration must be submitted to customs authorities upon receipt or dispatch of goods). The Intrastat system is required for all EU Member States, but it is not uniform in the area of the collection of primary data (e.g. forms of reports, organisation). The duty of using Intrastat is established by EU regulations. For the Czech Republic, those provisions are regulated by the Customs Act and its implementing regulations. The duty of reporting data for Intrastat applies to parties who exceed the assimilation threshold 13

14 for the receipt or dispatch of goods for which data for reporting to Intrastat must be kept. They thereby become reporting units. The duty of reporting data for Intrastat does not, however, apply to a party that is not required to file a VAT return (nonpayers of VAT), and such a party does not become a reporting unit. The assimilation threshold is set at CZK four million for dispatched goods and CZK two million for received goods. It is determined from the invoiced value or the value that should be reported as invoiced to Intrastat, independently of each other, separately for the receipt and for the dispatch of goods. For the needs of foreign trade statistics, within the framework of Intrastat, grossing-up is being made for non-response and threshold values. Grossing-up, however, is being made only to the level of HS (2). (For details on Intrastat methodology, go to ) At the level of HS (2), after grossing-up, the data on total imports and exports should be comparable to data from before For the purposes of compiling MFA, however, a more detailed categorization of data on foreign trade is needed HS (4), HS (6). For this more detailed categorisation, no grossing-up is being made. For this reason, for the purposes of MFA, besides the standard categories of material flows (see Annex No. 1, table - imports and exports), an Unspecified category was added. Unfortunately, data from the Foreign Trade Application are continually updated, so it is possible that the current data vary from the data used for calculating material flow accounts. Within the framework of the project, an auxiliary file was created that allows the generation of data for imports and exports for individual groups by harmonised system (HS). Three types of tables were created (for more detailed classification, see Annex No.1, table for imports and exports): 1/ contains: raw materials, semi-finished products, finished products, other products, and since 2004 the category unspecified. 2/ includes: biomass, fossil fuels, metallic minerals, non-metallic minerals, products, and since 2004 the category unspecified. 14

15 3/ aggregated data for renewable and non-renewable resources, and since 2004 the category unspecified. Socio-economic data Data source on population figures and on gross domestic product (in the national currency) is the Czech Statistical Office. Data on GDP in USD are taken from the OECD. (See Annex No.1, table of socio-economic data) Selected MFA indicators The results for selected MFA indicators Direct Material Input (DMI), Domestic Material Consumption (DMC) and Physical Trade Balance (PTB) are stated in Annex No. 1 in the table of indicators. 5. CONCLUSION The final results for attained within the framework of the MB PHARE 2003 project are found in Annex No. 6. A part of the MB PHARE 2003 project was the preparation of the first annual issue of a thematic publication focusing on the question of environmental accounting. The publication will be completed and send to the project coordinators by the end of December The following main conclusions have arisen from project realisation: o The initiation of regular annual compiling of the indicators Direct Material Input (DMI), Domestic Material Consumption (DMC) and Physical Trade Balance (PTB) o The providing of the aforementioned data (especially the DMC indicator) for the Situation Report on Sustainable Development Strategy in the Czech Republic o The providing of data to the public 15

16 ANNEXES 1. Results of MFA in the Czech Republic for (Non-renewable Resources, Renewable Resources, Imports, Exports, Socio-economic data, Selected MFA Indicators) in Excel format 2. List of Abbreviations 16

17 Annex No. 2: LIST OF ABBREVIATIONS CZSO CUEC MPO MŽP MFA Eurostat DMI DMC DME PTB NAS MB PHARE 2003 VÚLHM Czech Statistical Office Charles University Environment Centre Ministry of Industry and Trade Ministry of the Environment Economy-Wide Material Flow Accounts (Accounting) Statistical Office of the European Communities Direct Material Input Domestic Material Consumption Domestic Material Extraction Physical Trade Balance Net Addition to Stock PHARE Multi-beneficiary Statistical Co-operation Programme 2003 The Forestry and Game Management Research Institute 17