Life Cycle Assessment (LCA) on economic sectors of Jordan based on I/O analysis with an adapted version of the ecological scarcity method

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1 based on I/O analysis with an adapted version of the ecological scarcity method by Dr. Fredy Dinkel, Carbotech AG, Switzerland Marc Bachmann, Carbotech AG, Switzerland

2 Life Cycle Assessment on economic sectors of Jordan based on I / O analysis Master s Thesis of Marc Bachmann MAS Environmental Technology and Management University of Applied Sciences Northwestern Switzerland (FHNW), Fredy Dinkel in collaboration with Royal Scientific Society (RSS) in Amman, Bassam Hayek Ø Which economic sectors are seen most eco-efficient for Jordan and should be developed? How much water is needed to earn JD in the different economic sectors? What are the environmental impacts of the economic sectors in relation to its value added?

3 Method Jordan I-O Matrix An input-output matrix of Jordan s economic sectors has been developed showing the economic interrelations between the different sectors. Linking the input-output matrix with environmental data from enables to express the environmental impacts per unit of turnover and / or value added of an economic sector.

4 Collection of data Jordan I-O Matrix From the Jordanian Department of Statistics (DOS) the following data of the year 2006 has been available for every sector: intermediate consumption of goods and services imports gross output and gross domestic product To generate the matrix it was necessary to distribute the intermediate consumption to the different sectors. This has been done by estimations based on expert judgements. This process of data acquisition was difficult. Although a lot of information was available it was not always possible to get the figures needed in a qualitatively sufficient manner. Ø A detailed matrix for about 50 sectors has been generated.

5 Adaptation to the Jordanian situation LCA in Jordan The use of LCA for decision making is quite new in the MENA region but of increasing interest. Most LCA valuation methodologies and databases were developed in and for Europe and North America: Some environmental problems as well as human activities are specific to countries or regions. Thus, valuation methodologies and databases must be adapted to the Jordanian situation. There is the need of adaptation: Important data sets like electricity mix or fuel production (refinery) and transport have been generated based on the ecoinvent database. The valuation method ecological scarcity was adapted to Jordan taking into account the environmental goals and situation of Jordan.

6 Adaptation of valuation methodology by Grégoire Meylan, Fredy Dinkel & RSS LCA Team LCA in Jordan Ecological scarcity 2006 valuates environmental impacts according to Swiss environmental policy goals and actual flows: If a human activity generates an environmental impact in a field which is highly sensitive for Switzerland, it will be highly valuated. à E.g. ecological scarcity 2006 does not highly valuate the use of water as there is no water scarcity in Switzerland. Ecological scarcity 2006 was adapted to Jordan taking into account the actual flows, the legal situation, the environmental goals and the scarcity of resources like water: The whole set of factors have been adopted to the Jordanian situation. If no data was available Swiss data has been used taking into account the population and the technical situation of Jordan.

7 Example: Transport, passenger car Adaptation of valuation methodology & data Europe 5.5 Jordan kpt kpt Transport, passenger Petrol, low-sulphur Transport, passenger Petrol, low-sulphur car, petrol, fleet average, at regional storage car, petrol, fleet average, at regional storage Emission into Air Emission into Surface Water Emission into Ground-Water Emission into Air Emission into Surface Water Emission into Ground-Water Emission into Top Soil Energy Resources Natural Resources Deposited Waste Water Resources Emission into Top Soil Energy Resources Natural Resources Deposited Waste Water Resources Comparing 23.6 pkm 'Transport, passenger car, petrol, fleet average/ch U' with 1 kg 'Petrol, low-sulphur, at regional storag Comparing 23.6 pkm 'Transport, passenger car, petrol, fleet average/ch U' with 1 kg 'Petrol, low-sulphur, at regional stor E.g. the scarcity of water is very high in Jordan. In consequence the water consumption will be valuated very high.

8 Economic analysis of the main sectors of Jordan Results 8'000 7'000 6'000 5'000 Turn over Added Value 4'000 3'000 2'000 1'000 0 A) Agriculture B) Mining C) Industry D) Energy E) Construction F) Trade G) Tourism H) Transport I) Services J) Public sector Mio. JD

9 Water consumption per JD value added in the different economic sectors Results water consumption import m3 water consumption domestic m A) Agriculture B) Mining + Quarrying C) Industry D) Energy E) Construction F) Trade G) Tourism H) Transport I) Services J) Public Sector X) Imports

10 Valuated water consumption per JD value added in the different economic sectors Results Valuated water consuption Jordan [ M points ] Water Consumption Import 0 A) Agriculture B) Mining + Quarrying C) Industry D) Energy E) Construction F) Trade G) Tourism H) Transport I) Services J) Public Sector X) Imports Water Consumption Domestic

11 Environmental impacts per JD value added in the different economic sectors Results 20 Ecological scarcity Jordan [ G points ] Deposited Waste Natural Resources Energy Resources Emission into Top Soil Emission into Ground- Water Emission into Surface Water Emission into Air 2 0 A) Agriculture B) Mining + Quarrying C) Industry D) Energy E) Construction F) Trade G) Tourism H) Transport I) Services J) Public Sector X) Imports

12 Relevant emissions and use of resources in the different sectors Results 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sector agriculture Sector industry Sector services Mercury Copper Copper Benzene DOC, Dissolved Organic Carbon BOD5, Biological Oxygen Demand COD, Chemical Oxygen Demand water, surface, moderate water stress TOC, Total Organic Carbon Methane, fossil Lead Oil, crude, in ground Particulates, < 2.5 um Cadmium, ion NMVOC Radioactive species, Nuclides, unspecified Cadmium low- active radioactive waste Zinc, ion final repository for radioactive waste Nitrogen oxides Volume occupied, underground deposit Oils, unspecified water, ground-, extreme water stress Sulfur dioxide water, surface, extreme water stress Carbon dioxide, fossil remaining substances

13 Environmental impacts per JD value added in the different economic sectors Results Ecological scarcity Jordan [ points ] Deposited Waste Pt Natural Resources Pt Energy Resources Pt Emission into Top Soil Pt Emission into Ground- Water Pt Emission into Surface Water Pt Emission into Air Pt Agriculture, Hunting and Forestry 11 Extraction of Natural Gas 14 Other Mining and Quarrying 15 Food Products and Beverages 16 Tobacco Products 17 Textiles 18 Wearing Apparel 19 Leather Products 20 Wood & its Products, Except Furniture 21 Paper and Paper Products 22 Publishing and Printing 23 Refined Petroleum Products 24 Chemicals and its Products 25 Rubber and Plastics Products 26 Non- Metallic Mineral Products 27 Basic Metals 28 Fabricated Metal Products Machinery, Equipment and Electrical Transport Equipment 36 Furniture and Manufacturing not 40 Production and Distribution of Electricity 41 Collection, Purification and Distribution of 45 Construction 50 Sales, Maintenance and Repair of Motor 51 Wholesale Trade and Commission 52 Retail Trade, Except of Motor Vehicles 55 Hotels and Restaurants 60 Land Transport 61 Water Transport 62 Air Transport 63 Supporting and Auxiliary Transport Activities 64 Post and Telecommunications 65 Financial Intermediation 66 Insurance 67 Activities Auxiliary to Financial 70 Real Estate Activities 71 Renting of Machinery and Equipment 72 Computer and Related Activities 73 Research and experimental development 74 Other Business Activities 75 Public Admin., Defense and Social Security 80 Education 85 Health and Social Work 91 Furniture and Manufacturing not 92 Recreational, Cultural and Sporting Activities 93 Other Service Activities 95 Private Households with Employed Persons XX Imports

14 Consumption of domestic water Example: manufacturing of chemicals & its products 30 m 3 water is used per JD of value added 11 m 3 direct use 19 m 3 in other sectors

15 Total consumption of water Example: manufacturing of chemicals & its products 132 m 3 water is used per JD of value added 103 m 3 water used abroad 30 m 3 water used in Jordan

16 Weighted water consumption using eco-factors for fresh water Example: manufacturing of chemicals & its products The use of domestic water is important regarding the Jordanian situation.

17 Discussion The results clearly show the problem of domestic water use. However it is not as simple as to conclude that there must be a shift from agriculture to other sectors. The reality is much more complex because of different reasons like: Social aspects like employment, education cannot be neglected when taking strategic decisions. The structure of the Jordanian society will not favour an economy which depends on services alone. Detailed analyses and improvements are necessary and possible with this tool.

18 Conclusions The study is a good initial position and gives first insights into which economic sectors are more eco-efficient than others. The water footprint is essential for semiarid and arid areas such as Jordan but it is also important to take into account other environmental impacts. Recommendation: Improvement of the input-output model à An official, verified input-output matrix of Jordan s economy would be very helpful. Amelioration of the environmental data sets

19 Future actions The tool can be used, especially after improvement, for: Evaluating the water footprint and the environmental impacts of sectors to evaluate e.g.: where a lot of scarce domestic water is exported in products if it could be better to import water intensive products from countries with less water scarcity Strategic decisions on which sectors have to be developed taking into account the environmental, social and economic dimension Analyzing the different sectors and the relations to the others for improvement For hybrid LCA

20 Workshop: How to use I/O for decision support Insight into practical use of I/O analysis in EMIS Hybrid LCA Two examples from practical experience: Changes in the national economy represented through I/O analysis à economic and ecological effects Calculate personal environmental footprint by using hybrid LCA

21 Thank you for your attention I hope there will be questions to discuss now or later