Clarification of EW-MFA methodology and terminology

Transcription

1 EUROPEAN COMMISSION EUROSTAT Directorate E: Sectoral and regional statistics Unit E-3: Environmental statistics and accounts Doc. ENV/MFA_TF/02 (2009) Documents only available in EN Point 2 of the agenda Clarification of EW-MFA methodology and terminology Eurostat Julie L Hass For decision Material Flow Accounts Task Force October 2009 BECH building Room B2/464

2 Meeting Documents can soon be downloaded from the Environment statistics meetings CIRCA site at Please note that, for environmental reasons, paper copies of meeting documents will not be available in the meeting room. 2

3 Clarification of EW-MFA methodology and terminology A number of issues have arisen during the past 2 years which would benefit from a discussion with MFA Task Force experts to try to determine best practice and to try to further harmonize the methodologies and improve the data collection in countries and by Eurostat. This is especially important when this could impact the module for MFA in the proposed environmental accounts legal basis. The Task Force members are requested to carefully consider the following issues and come with suggestions to try to solve these issues. A. Material Categories There are a number of issues about the material categories that still need some improvements. 1. Category 3: Terminology and split between 3.1 and 3.2 In 2007 there were only 2 levels in the classification, for 2009 a third level was introduced so that the figures could be published at a 2-digit level. The levels of uncertainty in the detailed categories were too large to publish for many countries so to provide some additional information a third level was introduced to the classification. Currently: A.3.1 Non metallic minerals - stone and primarily industrial use A.3.2 Non-metallic minerals - bulk materials used primarily for construction This split was made to separate the "statistics" from the "estimates" and it was thought that in the future quality reporting it would be easier to have these different approaches grouped together. It would also allow for publishing the figures that are typically reported by countries without being forced to use a flag and then make estimates for the materials that are typically not reported and have been estimated by Eurostat (or the consultants) but marked with a flag showing that these figures have been estimated. Does this split work? Are these labels appropriate? If no, please come with alternative suggestions. 2. Category 4: Petroleum resources (Fossil energy carriers) The changes from 2007 to 2009 were perhaps not the most advisable. There is a need to reconsider these categories both in what they include and the names. Two big problems were pointed out by countries in the 2007 reporting and in MFA grant funded projects related to category 4: (1) there is a need for oil sands and oil shale to be separated from coal; and (2) there is a need to clarify where and how to report natural gas liquids (NGL) and condensate in the DE table A. It is also important to see how these are connecting to the trade statistics. Additional issues related to this category include: Another problem is the placement of "peat" in this category. In CPA2008 "peat" is under 08.1 Stone, sand and clay (08.92 Peat). There are also non-energy uses of peat. Also peat is not considered a "fossil." Should this category be changed to biomass? And if so, how? There is still a need to improve the instructions and conversion factors provided in the compilation guide. Criticisms of the labels used in the 2007 questionnaire led to the revision in 2009 but this terminology is not appropriate for a number of reasons. All terms used in this section need to be considered. Task Force members are requested to come with recommendations for improving this section of the classification the relation to energy statistics and CPA should be considered as well as the publication level (which should be at the 2-digit level to be consistent). 3

4 3. Changes from 2007 to 2009 with respect to proposed publication level Problems were encountered when trying to estimate and publish the data reported in The result was that the data were only published at highly aggregated levels since no consistent level of aggregation below the 3 main materials from the classification, biomass, minerals and fossil energy, was publishable. The classification for biomass, metallic minerals and non-metallic minerals appears to be working for countries that attended the workshop. There are plans to publish at the 2-digit level but this may need to be slightly adjusted since the figures for A.1.5 Hunting and gathering are often not reported and the amounts are very small in comparison to other 2-digit levels. Proposal is to change the name of 1.6 to " and animal products" from " meat and meat products" to better reflect the inclusion of and The renaming of 4.1, 4.2, 4.3 was considered in the agenda point above. Task Force members are asked to consider the following proposal to publish at the 2-digit level- Since some of the categories apply to DE only and others only to Trade the symbol "-" indicating that the activity does not exist will be used. Does this make sense? What to do about Hunting and gathering? Where to include this? Publishing of Trade: 17 groups Publishing of Domestic Extraction: 11 Groups 1 B.1.1 Primary crops A.1.1 Primary crops 2 B.1.2 Crop residues (used), fodder crops and grazed biomass A.1.2 Crop residues (used), Fodder crops and grazed biomass 3 B.1.3 Wood A.1.3 Wood 4 B.1.4 Fishing capture A.1.4 Fish capture 5 - A.1.5 Hunting and gathering 6 B.1.6 Live animals other than in 1.4. and animal products - 7 B.1.7 Products mainly from biomass - 8 B.2.1 Iron ores A.2.1 Iron ores 9 B.2.2 Non-ferrous metal ores A.2.2 Non-ferrous metal ores 10 B.2.3 Products mainly from metals - 11 B.3.1 Non metallic minerals - stone and primarily industrial use A.3.1 Non metallic minerals - stone and primarily industrial use 12 B.3.2 Non-metallic minerals - bulk materials used primarily for construction 13 B.3.3 Products mainly from non-metallic minerals - A.3.2 Non-metallic minerals - bulk materials used primarily for construction 14 B.4.1 Coal and other solid energy resources A.4.1 Coal and other solid energy resources 15 B.4.2 Liquid and gaseous petroleum resources A.4.2 Liquid and gaseous petroleum resources 16 B.4.3 Products mainly from petroleum resources - 17 B.5 Other products - 18 B.6 Waste imported for final treatment and disposal - B. Use of PRODCOM Many countries are using PRODCOM statistics as a source of data and the appropriate codes have been added to the compilation guide and the calculation tools as appropriate. Our colleague from Bulgaria, Elena Petrova, brought our attention to the following potential problem with using PRODCOM statistics as a data source. She mentions that in the future PRODCOM is changing from "production" to "sales" and provides the following example related to copper as an illustration of how this can be problematic to MFA (excerpt from follows): The word "extraction" supposes total production of ores, gravel and sand, but PRODCOM List 2008 (and all older versions as well) requires a type of production "S" for these codes. That means that only production SOLD in quantity and value (without "T" - total production) is required. Additionally the UN conception of total production is that "In principle, production data refer to the TOTAL industrial production, measured as production SOLD". There is no problem for us (in Bulgaria) to provide total production because we collect data for both production types (S and T) for all PRODCOM headings, but that is a matter of principal. There are 4

5 cases where total production differs significantly from sold production. For example, for heading "Copper ores and concentrates" 2008 total production data is tonnes, but sold production data is only tonnes. The interpretation for what is included in PRODCOM only sold quantities in the future is correct as far as we understand the implementation manual for PRODCOM. Given this change in PRODCOM, do Task Force members have other data sources that should be included in the compilation guide for determining the "total production" of products? How should this problem be addressed in the guidelines? C. Correspondence lists for domestic extraction (FAO) and trade statistics (CPA, HS/CN/) Task Force members are requested to review the various correspondence lists. These are central for converting from the statistical system to the Material Flow Categories. Previous versions of these tables have included codes twice and have not been exhaustive. We must have agreement on these lists to harmonize the methodology. Do NOT under estimate the time needed for this task! Please check the following changes that were made between the June 09 correspondence tables and the Sept 09 tables (which were made at the 8-digit level of ) many have to do with waste some are only proposals (C, E, F). (A) category: 288 Non-Ferrous base metal waste and scrap June 09 correspondence table treatment: Other metals Sept. 09 alternative treatment: Slag, ash and residues Other metals Copper waste and scrap copper Nickel waste and scrap nickel Aluminium waste and scrap Bauxite and other aluminium Lead waste and scrap Lead Zinc waste and scrap Zinc Tin waste and scrap Tin Potential Alternative treatment: Put all of 288 under "6 Waste imported/exported for final treatment and disposal" (B) category: 525 Radioactive and associated materials June 09 correspondence table treatment: 5 Other Products Sept. 09 alternative treatment: 525 Radioactive and associated materials Uranium and thorium Potential alternative treatment: 525 Radioactive and associated materials 2.3. Products mainly from metals 5

6 (C) category: 579 Waste, parings and scrap of plastics June 09 and Sept. 09 correspondence table treatment: 4.3. Products mainly from petroleum products Potential alternative treatment: 579 Waste, parings and scrap of plastics "6 Waste imported/exported for final treatment and disposal" (D) category: 693 Wire products (excluding insulated electrical wiring) and fencing grills June 09 correspondence table treatment: Other metals Sept. 09 Alternative treatment: Stranded wire, ropes, cables, plaited bands and the like of iron or steel 2.1 Iron ores and concentrates, iron and steel, primary and processed of copper Copper of aluminium Bauxite and other aluminium Barbed wire of iron or steel 2.1 Iron ores and concentrates, iron and steel, primary and processed Cloth, grill, netting of iron or steel 2.1 Iron ores and concentrates, iron and steel, primary and processed (E) category: 751 Office Machines Currently under : 2.3. Products mainly from metals Potential alternative treatment: 751 Office Machines 4.3. Products mainly from petroleum products (F) category: 761 Monitors and projectors Currently under : 2.3. Products mainly from metals Potential alternative treatment: 761 Monitors and projectors 4.3. Products mainly from petroleum products (G) category: 599 Residual products of the chemical or allied industries, N.E.S.; Municipal waste, sewage sludge, other wastes June 09 correspondence table treatment: 5 Other Products Sept. 09 Alternative treatment: 599 Residual products of the chemical or allied industries, N.E.S.; Municipal waste, sewage sludge, other wastes "6 Waste imported/exported for final treatment and disposal" 6

7 FAO codes lists are also causing problems Our colleague from Luxembourg pointed out that the timber codes excluded coniferous trees. An attempt was made to correct this but this needs to be reviewed because IFF made the following observations after the attempted correction was sent out: In the FAO classification, the symbol "+" behind an item description always indicates that the flow is a sum of other reported flows. In the case of timber, this means that the industrial roundwood flows (1866 and 1867) are sums of other flows, for example. With the allocation to MFA categories as it is now, we will therefore have a problem with double counting. Next to what you already noted below, the following hierarchy applies 1866: 1601, 1602, : 1603, 1604, : 1866, : 1867, 1628 Basically, the codes starting with "18" should not be included in order to avoid double counting, leaving us with: Timber 1601 Sawlogs+Veneer Logs (Coniferous) 1604 Sawlogs+Veneer Logs (Non-Coniferous) 1602 Pulpwood,Round&Split (Coniferous) 1603 Pulpwood,Round&Split (Non-Coniferous) 1608 Pulpwood+Particles (Coniferous) 1611 Pulpwood+Particles (Non-Coniferous) 1623 Other Indust Roundwd (Conferous) 1626 Other Indust Roundwd (Non-Conferous) 1651 Ind Rwd Wir (C) 1670 Ind Rwd Wir (NC) Other 1657 Ind Rwd Wir (NC) Tropica Wood Fuel 1627 Wood Fuel(C) 1628 Wood Fuel(NC) It may make sense to include the codes for the C and NC type of fuel wood as this is the level of aggregation at which the conversion from volume to mass can be done. Are there other corrections needed of the FAO table? Please check these! Since the conversion from volume to mass is done according to coniferous non-coniferous should the conversion table be at this level of detail as well? D. Issues related to the MFA annex for the legal base Reporting tables At this time only the input side of EW-MFA is included in the annex of the legal base this seemed like the best approach since almost no reporting of the output side has been obtained from countries. The reporting tables are included in the text of the annex so these will become difficult to change! Please consider these carefully since changing anything after legal base approval will need to go through Parliament! The following items need special attention: - If/How to include the items that are labelled "memorandum items"? What are the units tonnes, percent? - Include the growth of trees? (M.1.3 Memorandum item: Net increment of timber stock) - Include the memorandum item of ore concentrations (for example, M Copper ores - metal content) (% or what are the units?) 7

8 - Include the fuels bunkered abroad/by foreign units domestically in the trade tables? ( Fuel for land transport, Fuel for water transport, Fuel for air transport) Including these will mean that countries will be required to report these items this is theoretically correct and some information is needed to correctly check the reported figures but is this realistic? System boundaries need to have a consistent, sensible delineation and clear definitions. We are having some challenges with the MFA annex: System boundary definitions what is the "rule" or "definition" that applies for ALL materials? The guidelines do not have a good definition of this and it is NOT the same for all materials we need ONE ruling principle/definition. When do we start counting? Just before the second processing step gross ores (where overburden is excluded), fish landed (where by-catch is excluded), timber (where the branches are excluded and the bark is included)? The definition is materials excluding "bulk water." What is the definition of "bulk water"? this is needed for the legal base. How is this distinguished from "water included in products" what about tap water this is a "product" (CPA Drinking Water). Or is it excluding water except for water included in products in the trade statistics? But what if a country provides tap water to another country? Please consult the latest version of the MFA annex to the legal base when considering these issues see final 6 pages of this document for MFA annex as of 19 September E. Country proposal: Leave out sand and gravel from EW-MFA Leave out sand and gravel from EW-MFA since this dominates and is not that important and has the highest uncertainty so statistically it ruins the rest of the picture. Since water was left out because the amounts would overwhelm the figures, why not do the same for sand and gravel? The economic costs and benefits of water use (hydroelectric power, drinking water, irrigation, etc.) are included in GDP but these are excluded from MFA since water flows are excluded, so system boundaries that are the same as the SNA are not a good argument. The uncertainty of these figures makes the uncertainty in the MFA aggregates so large that these are at best rough estimates and not of high enough quality to be considered "official statistics". F. Need to get MFA terminology in English German French coordinated so that the same terms are used by all countries also relevant for the legal base Statistics Switzerland provided a start to this process and IFF/Wuppertal is preparing a paper (ENV/MFA_TF/03 (2009)) to continue this harmonization process. 8

9 Draft version of MFA Annex as of 19 September 2009 ANNEX III MODULE FOR ECONOMY-WIDE MATERIAL FLOW ACCOUNTS (EW-MFA) SECTION 1 Activities Economy-wide material flow accounts (EW-MFA) are consistent compilations of the overall material inputs into national economies, the changes of material stock within the economic system and the material outputs to other economies or to the environment. EW-MFA covers all solid, gaseous, and liquid materials, except for flows of air and water that is not an integral part of products, measured in mass units per year. Similarly to the system of national accounts, material flow accounts serve two major purposes. The detailed accounts provide a rich empirical database for numerous analytical studies. They are also used to compile different material flow indicators for national economies at various levels of aggregation. EW-MFA is seen as a satellite system to the ESA95. This Annex defines the data to be collected, compiled, transmitted and evaluated for EW-MFA by the Member States. SECTION 2 Scope The distinction between stocks and flows is a fundamental principle of any material flow system. In general, a flow is a variable that measures a quantity per time period, whereas a stock is a variable that measures a quantity per point in time. EW-MFA is a flow concept. It measures the flows of material inputs, outputs and stock changes within the economic system (which includes household's activities) in mass units per year. For the purpose of this Regulation, the term: a) 'input flow' means all material flows that serve as an input to produce or reproduce the material stocks measured at the point where they cross the MFA specific system boundary; b) 'output flow' means discharges into the environment. This implies that it is measured at the point where control over the further location and composition of the materials is lost. SECTION 3 Coverage EW-MFA is consistent with the principles and system boundaries of the system of national accounts (ESA 95) and follows the residence principle. It accounts for material flows associated with the activities of all resident units of a national economy regardless 9

10 of their geographic location. In EW-MFA two types of material flows across system boundaries are relevant: 1. Material flows between the national economy and its natural environment: This consists of the extraction of primary (i.e., raw, crude or virgin) materials from and the discharge of materials to the natural environment. 2. Material flows between the national economy and the rest of the world economy. This encompasses imports and exports. Only flows that cross the system boundary on the input-side or on the output-side are counted (excluding air and water that is not an integral part of products). Material flows within the economy are not represented in EW-MFA and balances. This means that the national economy is treated as a black box in MFA and e.g. inter-industry deliveries of products are not described. Natural flows into, within, and out of the natural environment are likewise excluded. Domestic Extraction (DE) covers the annual amount of solid, liquid and gaseous raw materials (excluding air and water that is not an integral part of products) extracted from the natural environment to be used as material factor inputs in the economic system. Physical imports and physical exports covers all imported or exported commodities in mass units. Traded commodities comprise of goods at all stages of processing from basic commodities to highly processed products. SECTION 4 List of characteristics Member States shall produce statistics on the characteristics listed in section 6 SECTION 5 First reference year, frequency and transmission deadlines 1. Statistics shall be compiled and transmitted on a yearly basis. 2. Statistics shall be transmitted within 24 months after the end of the reference year. 3. The first reference year is the year where the regulation enters into force. 4. On the first data transmission, Member States shall also include annual data from 2008 to the first reference year. 5. In each subsequent data transmission to the Commission, Member States shall provide annual data for the years n-4, n-3, n-2, n-1 and n, where n is the reference year. 10

11 SECTION 6 Reporting tables Data, in mass units, shall be produced for the characteristics 1 listed in the following tables. Table A - Domestic Extraction (DE) 1 Biomass 1.1 Primary crops Cereals Roots, tubers Sugar crops Pulses Nuts Oil bearing crops Vegetables Fruits Fibres Other crops (Spices Stimulant crops, Tobacco, Rubber and other crops) 1.2 Crop residues (used), fodder crops and grazed biomass Crop residues (used) Straw Other crop residues (sugar and fodder beet leaves, other) Fodder crops and grazed biomass 1.3 Wood Fodder crops (incl. biomass harvest from grassland) Grazed biomass Timber (Industrial roundwood) Wood fuel and other extraction 1.4 Fish catch and other aquatic plants/animals Fish catch All other aquatic animals and plants 1.5 Hunting and gathering 2 Metal ores (gross ores) 2.1 Iron ores 2.2 Non-ferrous metal ores Copper ores - gross ore Nickel ores gross ore Lead ores - gross ore Zinc ores - gross ore Tin ores - gross ore Gold, silver, platinum and other precious metal ores - gross ore Bauxite and other aluminium ores - gross ore Uranium and thorium ores - gross ore Other metal ores - gross ore 3 Non metalic minerals 3.1 Non metallic minerals - stone and industrial use Ornamental or building stone Chalk and dolomite 1 These characteristics are currently under review and may be revised at a later stage. 11

12 3.1.3 Slate Chemical and fertilizer minerals Salt Other mining and quarrying products n.e.c. 3.2 Non-metallic minerals - bulk materials used primarily for construction Limestone and gypsum Gravel and sand Clays and kaolin Excavated soil, only if used 4 Petroleum resources (Fossil energy carriers) 4.1 Coal and other solid energy resources Brown coal Hard coal Oil sands and oil shale Peat 4.2 Liquid and gaseous petroleum resources Crude oil and natural gas liquids Crude Oil Natural gas liquids Natural gas Additionally, the following memorandum items should be provided: a) Net increment of timber stock (ton) b) Metal content for each non-ferrous metal ores (%) 12

13 Tables B (Imports Total trade), C (Imports extra-eu trade), D (Exports Total trade), E (Exports extra-eu trade) 1 Biomass and biomass products 1.1 Primary crops, primary and processed Cereals, primary and processed Roots, tubers, primary and processed Sugar crops, primary and processed Pulses, primary and processed Nuts, primary and processed Oil bearing crops, primary and processed Vegetables, primary and processed Fruits, primary and processed Fibres, primary and processed Other crops, primary and processed 1.2 Crop residues, fodder crops and grazed biomass Crop residues, primary and processed Straw Other crop residues Fodder crops and grazed biomass Fodder crops n.a. 1.3 Wood and wood products Timber, primary and processed Wood fuel and other extraction, primary and processed 1.4 Fish capture and other aquatic animals and plants, primary and processed 1.5 n.a Fish capture All other aquatic animals and plants 1.6 Live animals other than in 1.4., meat and meat products Live animals other than in Meat and meat preparations Dairy products, birds eggs, and honey Other products from animals (animal fibres, skins, furs, leather etc.) 1.7 Products mainly from biomass 2 Metal ores and concentrates, primary and processed 2.1 Iron ores and concentrates, iron and steel, primary and processed 2.2 Non-ferrous metal ores and concentrates, primary and processed Copper Nickel Lead Zinc Tin Gold, silver, platinum and other precious metal Bauxite and other aluminium Uranium and thorium Other metals 2.3 Products mainly from metals 3 Non-metallic minerals, primary and processed 3.1 Non metallic minerals stone and industrial use, primary and processed Ornamental or building stone 13

14 3.1.2 Chalk and dolomite Slate Chemical and fertilizer minerals Salt Other mining and quarrying products n.e.s. 3.2 Non metallic minerals bulk minerals used primarily for construction, primary and processed Limestone and gypsum Gravel and sand Clays and kaolin n.a. 3.3 Products mainly from non metallic minerals 4 Petroleum resources, primary and processed 4.1 Coal and other solid energy resources Brown coal Hard coal Oil sands and oil shale Peat 4.2 Liquid and gaseous petroleum resources, primary and processed Crude oil and natural gas liquids Crude oil Natural gas liquids Natural gas Adjustment for residence principle: Fuel bunkered by resident units abroad Fuel for land transport Fuel for water transport Fuel for air transport 4.3 Products mainly from petroleum products 5 Other products 6 Waste imported for final treatment and disposal SECTION 7 Maximum length of the transitional periods (to be completed) 14