1 NAMEA-Air Workshop (Hybrid accounts – SEEA) 19 September 2007, Eurostat Luxembourg Julie L. Hass, Statistics Norway Angelica Tudini, Istat (Italy, Istat

1

NAMEA-Air WorkshopNAMEA-Air Workshop(Hybrid accounts – SEEA)(Hybrid accounts – SEEA)

19 September 2007, Eurostat Luxembourg

Julie L. Hass, Statistics Norway

Angelica Tudini, Istat (Italy, Istat – Istituto Nazionale de Statistica)

Stephan Moll, Wuppertal Institute

Jörg Alexander Hanauer, Eurostat

Workshop outline – Questions are encouraged!

1. Introduction

2. What needs to be corrected / added to the official air emissions data (Kyoto) to get to NAMEA?

3. Bridge table

4. Emissions approach

5. Energy data first approach

6. Special topics / Questions / areas that need improvement

7. Estimating EU aggregates

8. Use of NAMEA data

3

1. Introduction1. Introduction

Julie Hass – Statistics Norway

What is “NAMEA” (national accounting matrix including environmental accounts)?

Use

Supply

National accounts Environmental accounts

Intermediate consumption Final use

Household consumption

Trade margins

Output

Value added

Imports

Air emissions of industries

Household air emissions

Household energy /water consumption

Energy /water consumption of

industries

Household waste generation

Waste generation of

industries

Environmental expenditure/taxes

of industries

Household environmental

expenditure/taxes

Why are we doing this? Why isn’t Kyoto / EMEP enough? Advantages (the added value of NAMEA) to other existing (air) reporting systems:

• Definitions are part of the standard statistical system – the whole picture is included (not the case for Kyoto/EMEP).

• Combine with the national accounts – this means that the environmental pressures can be associated with the economic activities (decoupling indicators) and analysis methods used in connection with the national accounts (input-output, general equilibrium models) can be extended to include environmental information (air emissions, energy use, waste, water use, etc.).

• There is more detail.

Environment and economy: figures into a picture

Which system do we change? National accounts or the environmental data?

• Change the environmental data to fit the national accounts!

• Why not the other way around?- National accounts is a statistical standard- Defined in such a way to include all economic activities- Not possible (?) or desirable to have different GDPs- Definitions in environmental agreements can change

• But the national accounts does not cover everything…- for example, activities that are not paid for (housework)- use of “common goods” (air, water not from water supply)

What is the residence principle?

• “An institutional unit is said to be resident within the economic territory of a country when it maintains the centre of economic interest in that territory – that is, when it engages, or intends to engage, in economic activities or transactions on a significant scale either indefinitely or over a long period of time, usually interpreted as one year.”

(SNA-1993)

• National accounts uses the residence principle – includes all economic activities not just a selection.

• Kyoto / EMEP uses a territorial definition and is based on fuel purchases within the national territory – regardless of who purchases, uses the fuel and where those emissions occur

So what difference does this make?

• Territorial vs. residence principle…(system boundaries) Major difference is due to international transportation – land, ocean, air…plus some other country specific activities such as tourism, fishing in international waters or within the fishing area of a foreign country with fuel purchases in a foreign country, etc.

• Categories – - NAMEA uses NACE/ISIC standard industry classification- Kyoto/Corinair uses “activities”

Data requirements: economic, emissions, energy

• Economic (resident units)– National accounts – value added

Time series requires value added in constant prices– Industry classifications according to NACE 2-digit– Household consumption

Time series requires HH consumption in constant prices

• Emissions / energy use– From resident units – non-resident units should be removed,

resident units operating abroad need to be added– Industry classifications according to NACE 2-digit (not “activities”) – emissions assigned to the economic activity responsible for the

emissions– Emissions from households

– CO2 emissions from biofuels

Practical approach to developing NAMEA • Ask the question, What are the important areas that need to be adjusted

to arrive at the residence principal?

• Talk with the national accounts experts – ask: what do they adjust in the national accounts? Tourism? International transportation – which types… shipping, air traffic, land transportation/lorries? Military operations?

• Then ask, how do they adjust? What do they base their adjustments on? transportation statistics? Rule of thumb: if the national accounts do not adjust than neither should you – but alway ask why they do not adjust to avoid surprises!

• Economic size of the adjustments gives you some idea regarding the importance – Big? Little? Uncertain? – and where to focus your efforts

• Homogeneous or heterogeneous in the national accounts – need to be consistent between the two data sets! Secondary and auxillary production.

Mouse / Elephant (focus should be on the elephant!)

You want to avoid surprises!

Surprise... it’s a 400 kg gorilla!!!

The two main approaches that countries use…(1) assigning emissions to NACE categories or (2) assigning energy use first to NACE categories and then calculating emissions.• Which method to use?

Answer: depends on what data you have available!And how your air emissions and energy data are organized.

• Need to know if you only have emissions data or if you have energy data by industry classifications or only by activity

• Also need to know how the energy data are used in the calculation of the emissions data (consistency between NAMEA and “official” air emissions reporting)

• Emissions data to NACE – Angelica Tudini, Istat (Italy)

• Energy data first to NACE and then emissions calculations – Julie Hass, Statistics Norway

Questions?

Workshop outline

1. Introduction


3. Bridge table






16

2. What needs to be corrected / 2. What needs to be corrected / added to the official air emissions added to the official air emissions data (Kyoto) to get to NAMEA?data (Kyoto) to get to NAMEA?

Transportation in hybrid/NAMEA accounts is a big challenge

Checking the residence principle – How do we identify the “international” part?

• What is most important in your country? How do you figure this out?

– Ask your national accountants!

– Examine your transportation statistics and look for information regarding international transportation and consult with your transportation statisticians!Do you have ocean transport as a separate NACE? (61.101)

– Examine your energy data. Does your country have only an energy balance (reporting to IEA/Eurostat) or does it also have energy “accounts” that include international transportation and other corrections to make the definition as close to the national accounts as possible?

Expected corrections based on economic activity

• International shipping Greece, Norway, Denmark, Nederland, UK, Japan, S. Korea, Liberia

• International fishing Spain, Ireland, UK, Denmark, Norway, Russia, Iceland

• International air transport (most countries, especially those with “hubs”)Nederland, UK, Germany, Italy, France

• International land transport (most countries, especially those in mainland Europe)

• National fuel purchases that are used outside national territory (cross-border trade) Luxembourg (because of low national fuel taxes)

• Emissions from land transport that do not involve fuel purchases (“transit countries” – just drive through without purchasing fuel) Switzerland, Slovenia, Belgium, Germany

• TourismGreece, Spain, Portugal, France, Malta, Crete

• Biofuels – CO2 emissions (other emissions are included)

What does Norway correct?

• Ocean transport

• International air transport

What should Norway correct?• Ocean transport

• International air transport

• International fishing

• International land transport – fuel purchases outside Norway

• CO2 from biofuels

Why doesn’t Norway correct for all of these?• Elephant/mouse:

Ocean transport is the elephant!

Kyoto 54.2 million tonnes CO2-equivNAMEA 66.2 million tonnes CO2-equiv 22 per cent more than official figures!

NACE 61.101 Ocean transport = 11.9 million tonnes CO2-equiv

• Data quality is poor…so error is large!Focus efforts to improve energy data for ocean transport!

• Use economic estimate of fuel purchases x average price = amount of fuel

Why doesn’t Norway correct for all of these?

• Assumptions (mouse in comparison to elephant):

• Number of tourists coming to Norway = Number of Norwegians traveling abroad

• Foreign fuel purchases in Norway = Norwegian fuel purchases abroad (tourists and lorries)Geographic reasons… do not drive thru Norway to anywhere else! Also examine transportation statistics to see that there are few foreign operators in Norway and vice versa

• Problems (Mouse? Gorilla?):

• International fishing: fuel purchases for fishing are based on very old survey (mid-1980s), no reliable way to assign fuel purchases to foreign vessels (fish catch?)

• CO2 from biofuels – not stable figures when assign to NACE

Angelica Tudini

“From CORINAIR to NAMEA total emissions: what does Italy correct”Luxembourg, September 2007

Training and Workshop on NAMEA

Luxembourg, 19th September 2007

2007 Training and Workshop on NAMEA

Our starting point:

CORINAIR TOTAL emissions

(from anthropogenic activities)

Our starting point:

CORINAIR TOTAL emissions

(from anthropogenic activities)

What does Italy correct?

Not the same as using the UNFCCC/EMEP totals as starting point!

Not the same as using the UNFCCC/EMEP totals as starting point!



Our objective:

NAMEA TOTAL emissions:

Our objective:

NAMEA TOTAL emissions:

What does Italy correct?

emissions of resident units due to domestic journeys and international journeys

in symbols:

EMIR(d) + EMIR(I) + EMIR(A) , Where:

EMIR(d): emissions of resident units due to domestic journeysEMIR(I): emissions of resident units due to international journeys leaving

from ItalyEMIR(A): emissions of resident units due to international journeys leaving

from abroad and arriving in Italy



The example of the Italian NAMEA - Air Transport The example of the Italian NAMEA - Air Transport

What do we have in CORINAIR :What do we have in CORINAIR :

• domestic air transport

• international air transport

• domestic air transport

• international air transport

CORINAIR

08 05 01 Domestic airport traffic (LTO cycles - <1000 m)

08 05 02 International airport traffic (LTO cycles - <1000 m)

08 05 03 Domestic cruise traffic (>1000 m)

08 05 04 International cruise traffic (>1000 m)(i)

The domestic component only is

included in UNFCCC reporting

(estimates of international air transport emissions are based on the number of incoming international flights regardless of the nationality of the company)

(estimates of international air transport emissions are based on the number of incoming international flights regardless of the nationality of the company)




How do we get to the NAMEA data: some numbers How do we get to the NAMEA data: some numbers

In symbols:

CORINAIR: EMIR(d) + EMINR(A) + EMIR(A)

NAMEA: EMIR(d) + EMIR(I) + EMIR(A)

In symbols:

CORINAIR: EMIR(d) + EMINR(A) + EMIR(A)

NAMEA: EMIR(d) + EMIR(I) + EMIR(A)

08 05 01 Domestic airport traffic (LTO cycles - <1000 m) EMIR(d) EMIR(d)

08 05 02 International airport traffic (LTO cycles - <1000 m) EMIR(A) + EMINR(A) EMIR(A) + EMIR(I)

08 05 03 Domestic cruise traffic (>1000 m) EMIR(d) EMIR(d)

08 05 04 International cruise traffic (>1000 m)(i) EMIR(A) + EMINR(A) EMIR(A) + EMIR(I)

NAMEACORINAIR

How do we single out EMIR(A) and add EMIR(I) ??How do we single out EMIR(A) and add EMIR(I) ??




How do we single out EMIR(A) and add EMIR(I) ??How do we single out EMIR(A) and add EMIR(I) ??

EMIR(A): [EMIR(A) + EMINR(A)] = FR(A) : [FNR(A) + FR(A)]EMIR(A): [EMIR(A) + EMINR(A)] = FR(A) : [FNR(A) + FR(A)]

i.e the share of emissions due to resident companies out of total international air traffic emissions is assumed to be equal to the share of international flights run by resident companies out of total flights

i.e the share of emissions due to resident companies out of total international air traffic emissions is assumed to be equal to the share of international flights run by resident companies out of total flights

EMIR(I) = EMIR(A) EMIR(I) = EMIR(A)



The example of the Italian NAMEA – International shipping The example of the Italian NAMEA – International shipping

What do we have in CORINAIR :What do we have in CORINAIR :

• domestic shipping EMIR(d) +EMINR(d)

• international shipping EMIR(I) + EMINR(I)

• domestic shipping EMIR(d) +EMINR(d)

• international shipping EMIR(I) + EMINR(I)

08 04 02 National sea traffic within EMEP area

Sailing boats, Motorboats, Watercrafts gasoline EMIR(d)

Cruise diesel oil EMIR(I) + EMINR(I)

Cruise / harbour residual oil EMIR(I) + EMINR(I)

Harbour diesel oil EMIR(I) + EMINR(I)

08 04 03 National fishing EMIR(d)kerosenegasolinediesel oil

08 04 04 International sea traffic (international bunkers)(h)

diesel oil EMIR(I) + EMINR(I)

residual oil EMIR(I) + EMINR(I)

lubricants EMIR(I) + EMINR(I)



The example of the Italian NAMEA – International Shipping The example of the Italian NAMEA – International Shipping

What do we need for NAMEA: EMIR(d) + EMIR(I) + EMIR(A) What do we need for NAMEA: EMIR(d) + EMIR(I) + EMIR(A)

08 04 02 National sea traffic within EMEP area

Sailing boats, Motorboats, Watercrafts gasoline EMIR(d)

Cruise diesel oil EMIR(d) + EMINR(d)

Cruise / harbour residual oil EMIR(d) + EMINR(d)

Harbour diesel oil EMIR(d) + EMINR(d)

08 04 03 National fishing EMIR(d)kerosenegasolinediesel oil

08 04 04 International sea traffic (international bunkers)

diesel oil EMIR(I) + EMINR(I) EMIR(I) + EMIR(A)

residual oil EMIR(I) + EMINR(I) EMIR(I) + EMIR(A)

lubricants EMIR(I) + EMINR(I) EMIR(I) + EMIR(A)

EMIR(d)

EMIR(d)

EMIR(d)

CORINAIR NAMEA

EMIR(d)

EMIR(d)



Some numbers

The example of the Italian NAMEA – International shipping The example of the Italian NAMEA – International shipping



The example of the Italian NAMEA – International Shipping The example of the Italian NAMEA – International Shipping

How do we single out EMIR(d) + EMIR(I) and add EMIR(A) ??How do we single out EMIR(d) + EMIR(I) and add EMIR(A) ??

EMIR(d): [EMIR(d) + EMINR(d)] = GR(d) : [GNR(d) + GR(d)]EMIR(d): [EMIR(d) + EMINR(d)] = GR(d) : [GNR(d) + GR(d)]

i.e the share of emissions due to residents out of total domestic/international shipping emissions is assumed to be equal to the share of goods shipped domestically/internationally by resident companies out of total goods transport (in tons)

i.e the share of emissions due to residents out of total domestic/international shipping emissions is assumed to be equal to the share of goods shipped domestically/internationally by resident companies out of total goods transport (in tons)

EMIR(I): [EMIR(I) + EMINR(I)] = GR(I) : [GNR(I) + GR(I)]EMIR(I): [EMIR(I) + EMINR(I)] = GR(I) : [GNR(I) + GR(I)]

EMIR(A): emissions estimated consistently with CORINAIR methodology



EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) summed up! EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) summed up!

The example of the Italian NAMEA Road Transport - 1


What do we have in CORINAIR for road transport processes (rt) :What do we have in CORINAIR for road transport processes (rt) :

i.e. emissions of resident as well as non resident units due to domestic journeys and to international journeys leaving from Italy

i.e. emissions of resident as well as non resident units due to domestic journeys and to international journeys leaving from Italy

070100 Passenger cars diesel oil EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070100 Passenger cars lpg EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070100 Passenger cars Motor Gasoline EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070200 Light duty vehicles < 3.5 t diesel oil EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070200 Light duty vehicles < 3.5 t Motor Gasoline EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070300 Heavy duty vehicles > 3.5 t and buses diesel oil EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070300 Heavy duty vehicles > 3.5 t and buses Motor Gasoline EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070400 Mopeds and Motorcycles < 50 cm3 Motor Gasoline EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070500 Motorcycles > 50 cm3 Motor Gasoline EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070600 Gasoline evaporation from vehicles EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)

070700 Automobile tyre and brake wear EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)



EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)



For all road transport processes (rt) :For all road transport processes (rt) :


i.e. emissions of resident units only for domestic and international journeys including those leaving from abroad

i.e. emissions of resident units only for domestic and international journeys including those leaving from abroad

How do we subtract EMINR(d) + EMINR(I) and add EMIR(A) ??How do we subtract EMINR(d) + EMINR(I) and add EMIR(A) ??



Road Transport Road Transport

For passenger road transportFor passenger road transport

Work on emissions by energy product separately (EMIj j = gasoline and diesel) For each j emissions are assumed to be proportional to the use of energy product j

Work on emissions by energy product separately (EMIj j = gasoline and diesel) For each j emissions are assumed to be proportional to the use of energy product j

For example For example

)(*) -(1 )()( pEMIWIEMIdEMI jNRj

Rj

Rj

Work on passenger and goods transport separately



Road TransportRoad Transport

Where:

Where:

i

ij

NRj

NRjNR

j

use

IuseduseW

)()(

is the share of non residents’ use on the national territory of energy product j for passenger road transport out of total passenger use for the

same energy product

)(AEMI Rj is obtained in a similar way



Some numbers

The example of the Italian NAMEA – Road Transport The example of the Italian NAMEA – Road Transport




For goods road transportFor goods road transport

EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I)


TG = GR(d) + GNR(d) + GR(I) + GNR(I)




MioTkm 2004 New Cronos source

GR(d) 158148,0 National annual road transport

GNR(d) 1000,6 Road cabotage transport by country in which cabotage takes place

GR(I) 18909,0 International annual road freight transportgoods loaded in reporting country

GNR(I) 31896,0 International annual road freight transport by country of loading and unloading and by reporting country;load: it; unload: world

Total TG 209953,6 Total goods transport (comparable to CORINAIR goods transport emissions)

GR(A) 19898,8 International annual road freight transport - goods unloaded in reporting countryby type of transport ; geo: itRoad cabotage by hauliers from each reporting country Quarterly cross-trade road freight transport




Each component of the emissions, including EMIR(A) is assumed to be proportional to the corresponding Tkm of goods transport , for example:

EMIR(A) : EMI(p) = GR(A) : TG,

i.e. the share of the emissions of resident companies for transport of goods outside the Italian territory, equals the share of goods transport by resident companies outside the Italian territory, GR(A), out of total goods transport, TG.

Each component of the emissions, including EMIR(A) is assumed to be proportional to the corresponding Tkm of goods transport , for example:

EMIR(A) : EMI(p) = GR(A) : TG,

i.e. the share of the emissions of resident companies for transport of goods outside the Italian territory, equals the share of goods transport by resident companies outside the Italian territory, GR(A), out of total goods transport, TG.



GR(d) 0,75

GNR(d) 0,005

GR(I) 0,09

GNR(I) 0,15Total TG 1,00

GR(A) 0,09

NAMEA share of CORINAIR emissions 0,94


Some numbers

Questions?

Workshop outline

1. Introduction


3. Bridge table






43

3. Bridge table3. Bridge table

Norway’s bridge table (draft)

Where do you find the EMEP/CLRTAP data to fill in the bridge table?• TABLE IV 1A: National sector emissions: Main pollutants, particulate

matter and heavy metals

UNFCCC – Table 10s

• Table 10s1 CO2

– Total Emissions/Removals with LUCF (Land use change and forestry)

– CO2 Emissions from biomass

• Table 10s2 CH4

• Table 10s3 N2O

• Table 10s4 HFCs, CFCs, SF6

Italy’s bridge table

Questions?

Workshop outline

1. Introduction


3. Bridge table






49

4. Emissions Approach4. Emissions Approach

Angelica Tudini, Istat


Angelica Tudini

“From CORINAIR to NAMEA activity emissions”Luxembourg, September 2007



to estimate air emissions caused by:

• production – industry

• consumption - households

NAMEA air emissions - objective

NMVOC : non-methane volatile organic compounds

NOX : nitrogen oxides

Pb : lead

PM10 : Particulate Matter up to 10 micrometers in size

SOX : sulphur oxides

SF6 : sulphur hexafluorids

PFC : perfluorocarbons

CH4 : methane

CO : carbon monoxideCO2 : carbon dioxideCO2 from biomassN2O : nitrous oxide

NH3 : ammonia

HFC : hydrofluorocarbons

For the air pollutants:



Classification for NAMEA-Air

industry (60 items or more!) : NACE Rev.1.1 nomenclature(statistical classification of economic activities in the European Community)

households (3 items) : COICOP(Classification of Individual Consumption by Purpose)

NAMEA functions:transport, heating, other

NAMEA economic activities +

NAMEA households consumption functions

NAMEA economic activities +

NAMEA households consumption functions

= NAMEA activities= NAMEA activities



What to do if basic data on air emissions come from CORINAIR inventory

CORINAIR air emission data are classified - for each pollutant - according to the process-based SNAP classification.

SNAP97: Selected Nomenclature for Air Pollution 1997

International conventions relevant for CORINAIR:UNFCCC = United Nations Framework Convention on Climate Change CLRTAP = UNECE/EMEP Convention on Long Range Transboundary Air Pollution



From CORINAIR to NAMEA

GENERAL PROBLEMS:

Derive NAMEA consistent emission totals

How to shift from the process-based SNAP classification to the activity-based NAMEA classification?

covered elsewhere in the Workshopcovered elsewhere in the Workshop



1. Analysis of the qualitative links between each SNAP97 process and NAMEA activities,i.e. the identification of the NAMEA activities

in which a SNAP97 process takes place

2. Allocation of the emissions of each SNAP97 processto the related NAMEA activities

How to shift from the process-based SNAP97 classification to the activity-based NAMEA 2000 classification?



1. Analysis of the qualitative links

Which are the NAMEA activities in whicheach SNAP97 process takes place?

Main Criterium:

the emissions of each SNAP97 process are always attributed

to the NAMEA activities that directly produce them

(general rule)



There is no standard connection between SNAP and NAMEA activities.

Attribution of SNAP-based emission data to NAMEA activities depends on:

•the economic structure of the countries •how the emissions are actually produced•whether the economic accounts are based on industries or

on homogenous branches

There is no standard connection between SNAP and NAMEA activities.

Attribution of SNAP-based emission data to NAMEA activities depends on:

•the economic structure of the countries •how the emissions are actually produced•whether the economic accounts are based on industries or

on homogenous branches



Industries vs homogenous branches

According to the ESA 95 two kinds of units are appropriate for the analysis of technico-economic relationships:

local kind of activity units (local KAUs) - grouped into industries

units of homogenous production - grouped into homogenous branches




Local KAU groups all parts of an institutional unit […] which are located in a single or closely located sites and which contribute to the performance of an anctivity at the class level (4 digits) of the NACE rev.1. In principle, as many local kind-of –activity units must be registered as there are secondary activities; however, if the accounting documents that would be necessary to describe such activities are not available, a local kind-of-acitivity unit may include one or several secondary activities. The group of local KAUs engaged on the same, or similar, kind-of-activity constitutes an industry. […] (§ 1.29).




For more refined analysis of the production process, use is made of an analytical unit of production. This unit, which is not observable(except in the case of a lcal KAU only producing one type of product), is the unit of homogenous production, defined as covering no secondary activities. Groupings of these units constitute homogenous branches” (§ 1.29).




When national accounts data in the economic module are presented by industry, each activity is responsible for the emissions stemming from its principal, secondary (if any) and ancillary activities, whereas when national accounts data are presented according to homogeneous branches, each activity is responsible for the emissions stemming from its principal and ancillary activities while emissions related to secondary activities should be placed under the branches that group all production of the same kind.



SNAP97 processes with only one link to the NAMEA activities

can be directly allocated to the related NAMEA activity

without further calculation

what is the share of air emissions to be attributed to each of the related NAMEA activities?

Possible outcomes of the FIRST STEP:

SNAP97 processes with multiple links to the NAMEA activities

2. Quantitative allocation



For SNAP97 processes linked to more than one NAMEA activity, basic data are needed in order to distribute the emissions among the related NAMEA activities.

Specifically:

energy data (data on emissions by fuel and energy use data

by activity)

activity-related CORINAIR background datadata on full time employees

Examples of methods to distribute the emissions



Energy use data

(p)EMI...(p)EMI...(p)EMI(p)EMIEMI(p)pnj21

where:

EMI(p) are the total emissions from the SNAP97 process p

EMIj(p) is the quantity of emissions arising from the use of the energy product j in the SNAP97 process p

j=1, 2, …, np is the generic element of the group of np energy products used for estimating the emissions of the SNAP97 process p

(for example for SNAP97 processes: 0201, 0203, 0701, 0702, 0703, 0704, 0705 )(for example for SNAP97 processes: 0201, 0203, 0701, 0702, 0703, 0704, 0705 )

Example 1Example 1



For each energy product j used in the SNAP97 process p, weights have to be found s.t.)( pW i

j

where:

represents the part of emissions to be attributed to each NAMEA activity i in which the SNAP97 process p is carried out

is the quantity of emissions arising from the use of the energy product j in the SNAP97 process p allocated to the NAMEA activity i

i = 1, ..., hp is the generic element of the group of hp NAMEA activities in which the SNAP97 process p is carried out

(p)W ij

(p)EMI ij

)(*)()( pEMIpWpEMI jij

ij

pn

j

ij

i pEMIpEMI1

)()(Total emissions from SNAP97 process p allocated to the NAMEA activity i are given by:

Total emissions from SNAP97 process p allocated to the NAMEA activity i are given by:



In the Italian NAMEA weights are calculated as follows:

ph

1i

(l)ij

(l)iji

j

use

use(p)W

where:

l indicates the specific function (“heating use”, “road transport use”, “off road transport use”, “other energy use”, “non energy use”) of the energy use data, associated to the SNAP97 process p

is the quantity of product j used by the NAMEA activity i for the function l(l)ijuse

Source: Istat energy use table (TIE) by energy product, by economic activity and households and by function



Building the Istat energy use table (TIE)

For each energy product, the Istat TIE data are calculated in three main steps:

1. Set up the input data

2. Analysis of the residuals of the non-balanced equation system

3. Balancing

For each energy product, the Istat TIE data are calculated in three main steps:

1. Set up the input data

2. Analysis of the residuals of the non-balanced equation system

3. Balancing

In order to be used in the NAMEA estimates, the Istat TIE is needed – for a given year – for each energy product used in the CORINAIR for SNAP97 processes whose emissions are distributed on the basis of energy data

In order to be used in the NAMEA estimates, the Istat TIE is needed – for a given year – for each energy product used in the CORINAIR for SNAP97 processes whose emissions are distributed on the basis of energy data



a) intermediate consumption by economic activity (101) and households’ final consumption - 102x1 column vector (ex ante estimate of the TIE column marginal values)

a) intermediate consumption by economic activity (101) and households’ final consumption - 102x1 column vector (ex ante estimate of the TIE column marginal values)

1. Set up the input data: 1. Set up the input data:

b) total (final and intermediate) consumption by function (road transport, off road transport, heating, other energy use, non-energy use) - 1x5 row vector (ex ante estimate of the TIE row marginal values)

b) total (final and intermediate) consumption by function (road transport, off road transport, heating, other energy use, non-energy use) - 1x5 row vector (ex ante estimate of the TIE row marginal values)

c) ex ante estimates (based on prior knowledge and hypothesis) on energy use by economic activity and households and by function - 102x5 matrix

c) ex ante estimates (based on prior knowledge and hypothesis) on energy use by economic activity and households and by function - 102x5 matrix

d) variance (ranging between 0 and 1) of the individual ex ante estimates - 103x6 matrix (containing the relative degree of reliability of the individual ex ante estimates)

d) variance (ranging between 0 and 1) of the individual ex ante estimates - 103x6 matrix (containing the relative degree of reliability of the individual ex ante estimates)

e) set of constraints (not always satisfied by data under points “a”, “b” and “c” above, that are independently estimated)

e) set of constraints (not always satisfied by data under points “a”, “b” and “c” above, that are independently estimated)



2. Analysis of the residuals of the non-balanced equation system: 2. Analysis of the residuals of the non-balanced equation system:

if the residuals generated by the independent ex ante estimates are too high, the final (next) step may lead to non significant results

if the residuals generated by the independent ex ante estimates are too high, the final (next) step may lead to non significant results

i.e. redistributing the discrepancies among the ex ante estimates by means of prior information on the accuracy of the individual estimates (variance values under point “d” above): the less the accuracy, the bigger the value change deriving from the redistribution of the residual

i.e. redistributing the discrepancies among the ex ante estimates by means of prior information on the accuracy of the individual estimates (variance values under point “d” above): the less the accuracy, the bigger the value change deriving from the redistribution of the residual

3. Balancing 3. Balancing



for the SNAP97 process 091001 the total methane emissions are calculated as a sum of the emissions from six economic activities and therefore, on the basis of the basic data, it is possible to exactly distribute the total methane emissions among the six NAMEA activities 15, 17, 21, 23, 24 and 27; the emissions of N2O are distributed with the same percentages calculated for methane

CORINAIR background data

Example 2Example 2



Data on full time employees

for the SNAP97 process 060107 the emissions to allocate to the corresponding NAMEA activities (20 and 36) are estimated on the basis of national accounts data on the number of full time employees by economic activity; the considered economic activities are: 20.10, 20.20, 20.30, 20.40, 20.51, 36.11, 36.12, 36.13, 36.14 e 36.15

Example 3Example 3



When the quantitative allocation is completed, you get:

Process 1 Process p Process zEmissions bySNAP97 process p

EMI(1) ... EMI(p) ... EMI(z)

NAMEA activity Emissions by process and by activity

Emissions byNAMEA activity

Activity 01 EMI01(1) ... EMI01(p) ... EMI01(z) EMI01

... ... ... ... ... ... ...Activity i EMIi(1) ... EMIi(p) ... EMIi(z) EMIi

... ... ... ... ... ... ...Activity h EMIh(1) ... EMIh(p) ... EMIh(z) EMIh

The intermediate matrix:emissions by SNAP97 process and by NAMEA activity



z

1p

ii (p)EMIEMI

SNAP97 process (p) linked to only ONE NAMEA activity i

EMI(p)(p)EMIi

SNAP97 process (p) linked to MANY NAMEA activities i(e.g. emissions distributed on the basis of energy use data)

pn

1j

ij

i (p)EMI(p)EMI

Questions?

Workshop outline

1. Introduction


3. Bridge table






75

5. Energy data first approach5. Energy data first approach

Julie L. Hass, Statistics Norway

Energy and emissions statistics – multi-purpose statistical system to address all user needs

• Need to first assign energy use according to NACE before emissions are calculated

• How do we know how much energy is used by the different industries? We have specific industry survey about energy use, get electricity from the producers, sometimes have economic information and then use average prices.

• Can then use more industry specific and process related emission factors to give more precise emissions calculations

Norwegian energy balances and accounts

Norwegian residents’ energy use on domestic territory excl. energy sectors

Norwegian residents’ energy use abroad

Foreigners’ energy use in Norway

Norwegian residents’ use of energy as raw materials

Energy use in the Norwegian residents energy sectors

THE ENERGY SOURCES BALANCE SHEET

THE ENERGY ACCOUNT

5 (6) dimensions in the air emissions database • Pollutants – 21 (CO2, CH4, SO2, HFCs, PFCs, SF6, metals,

particulates, etc.)

• Industries (NACE) – 130 including households (different detail than the national accounts)

• Fuels – 26(for example: coal, coke, fuel wood, wood pellets, natural gas, blast furnance gas, motor gasoline, aviation gasoline, jet kerosene, auto diesel, heavy fuel oil, municipal waste, special waste, etc.)

• Sources in use – 20(for example: direct fired furnaces, gas turbines, boilers, flaring, passenger cars, heavy duty vehicles, snowscooter, aviation helicopter, ships, small boats 2 stroke, equipment 4 stroke, tractors, etc.)

• Geographic location

• (Elevation – air transport )

Emissions from 5 different sources – summation of all of these different components• Energy carriers – combustion and non-combustion

uses (catalysts) – energy accounts as starting point

• Industrial processes (already identified by NACE since the LKAU report these to the Norwegian Pollution Control Authority (SFT) and these are identified by establishment number in the business register which then gives NACE)

• Solvent and other product use (need to assign to NACE) – sales of these products gives amounts, need to assign… use surveys of industries or producers sales information

• Agriculture (own NACE – need number & types of animals, manure management)

• Waste (assigned to those who own the waste disposal sites, primarily municipalities)

Consistency with UNFCCC emissions?

• Norway, yes! Because this is how we calculate our emissions – methodology is the same so it is then just to add or subtract various component from the main database

• Other countries, England, Denmark, the Netherlands will have a difference between their UNFCCC/EMEP/CLRTAP emissions and their NAMEA emissions that will not be corrections but will be recorded as statistical differences in the bridge table

81

Special topics / Questions / Special topics / Questions / areas that need improvementareas that need improvement

Energy balances vs energy accounts

• Differences between these two sets of data

• Trouble with balancing supply and use – how do countries balance these?

• NAMEA-energy tables – detailed tables to help produce the totals


Angelica Tudini

“NAMEA transport table”Luxembourg, September 2007


“2007 NAMEA Workshop”

In NAMEA, emissions are allocated to economic activities as defined in national accounts. The emissions from transport are allocated to the industries that undertake the transport activities and to households, when households use their own motorised vehicles. Emissions from own account transport are allocated to industries other than the Transport industries (NACE 60-63).



Hence: transport emissions are potentially included within the emissions of every

NAMEA activity

The idea of the transport table is to isolate transport emissions while keeping the activity breakdown

Pollutants: CO2, NOx, SO2, NMVOC, CO, particulate matter, and Pb



Definition of transport for NAMEA: it includes movements of passengers and goods on land, on water, and in the air, using motorised engines. When using motorised vehicles, transport implies the use of infrastructures accessible to the public such as roads, railways, pipelines, inland waterways, seaports and airports. This includes movements of empty vehicles for repositioning but excludes movements of passengers and goods within private property and installations.



Process 1 Transport process p

Transport process q

Process

Emissions by SNAP97 process p

EMI(1) ... EMI(p) EMI(q) EMI(z)

NAMEA activity Emissions by process and by activity

Emissions by

NAMEA activity

Activity 01 EMI01(1) ... EMI01(p) EMI01(q) EMI01(z) EMI01 ... ... ... ... ... ... ... Activity i EMIi(1) ... EMIi(p) EMIi(q) EMIi(z) EMIi ... ... ... ... ... ... ... Activity h EMIh(1) ... EMIh(p) EMIh(q) EMIh(z) EMIh

The overall intermediate matrix:emissions by SNAP97 process and by NAMEA activity



if you use the CORINAIR first method)

the OBJECTIVE in order to fill in the transport table is

to identify which SNAP processes are consistent with the Eurostat transport table definition



SNAP 97 transport codes

07 - road transport0801 - defence0802 - railways

0803 - inland waterways080402 - maritime act. (nat)

080403 - national fishing080404 - maritime act. (internat.)

0805 - air traffic0806 - agricolture, 0807 - forestry

0808 - industry

Eurostat transport

Table

Other mobile sources



Transport process p

Transport process q

Emissions by SNAP97 transport process p

EMI(p) ... EMI(q)

NAMEA activity Transport emissions by process and by activity

Transport

emissions by NAMEA activity

Activity 01 EMI01(p) ... EMI01(q) EMI01 ... ... ... ... ... Activity i EMIi(p) ... EMIi(q) EMIi ... ... ... ... ... Activity h EMIh(p) ... EMIh(q) EMIh

The transport intermediate matrix:emissions by SNAP97 process and by NAMEA activity

CO2 from biomass – estimating? Assigning to industries?

• CO2 from biomass is NOT included in the Kyoto figures

• Usually the emissions coefficient is = 0 in Kyoto calculations but estimated and reported as a memo item

• This coefficient needs to be changed to a value >0 so that CO2 emissions from biomass will be calculated.

• Have tried to assign to 2-digit NACE and the figures are inconsistent from year to year – needs improvement before this can be included with confidence.

• Norway reports NAMEA without CO2 biomass emissions

Developing consistent time series

• What do you do when an establishment changes NACE category? Merger/acquisition; one activity becomes the ‘major source of income’ so that the LKAU needs to be redefined into a different NACE.

• Need to coordinate this change with the change in the National Accounts – the unit needs to change at the same time in both sets of statistics

• National accounts revision is every 5 years whereas air emissions are revised every year

What the new NACE can mean for NAMEA

• There are 2 changes being implemented in the near future:– National accounts– NACE rev. 2

• Need to be aware of when and how this is going to happen in your countries!

• Coordination between the national accounts and air emissions/energy data – when are the new and old classifications going to be used?

• Data requirements for assigning emissions or energy to industries – this needs to be kept at the most detailed level because these factors may need to change!

Questions?

Workshop outline

1. Introduction


3. Bridge table






95

Estimating EU aggregatesEstimating EU aggregates

Stephen Moll, Wuppertal Institute

6 Survey 2006 (last data collection exercise)

• Data collection: – June until September 2006– 29 countries– new electronic Questionnaire (13 air pollutants, 2

energy use, 4 economic variables)• Response:

– 24 countries reacted– 20 countries provided data (thereof 16 filled

questionnaire)– Varying coverage:

• variables, time, industry-breakdown

6 Survey 2006 – new questionnaire

1995 1996 … 2003 1995 1996 … 2003

Industries Industries

Nac

e b

ased

in

du

stry

cl

assi

fica

tio

ns

Nac

e b

ased

in

du

stry

cl

assi

fica

tio

ns

Households, total Households, total-- transport -- transport

--heating --heating

--other --other

NAMEA totalsless national residents

plus non-residents

less/plus other

totals accordingUNFCCC or CLRTAP 1995 1996 … 2003

Industries

Nac

e b

ased

in

du

stry

cl

assi

fica

tio

ns

economicvariable

years

Air emissionsby industry

Householdair emissions

Bridging items

air pollutant

Economic variableby industry

Scheme for economic variables data sheet

years

Energy useby industry

air pollutant

scheme for air emissions data sheet Scheme for energy use data sheet

Energy useby households

years

6 Areas that need improvement identified from the last data collection exercise• Data coverage

– Countries,

– variables (air emissions, energy uses, economic variables),

– time,

– industry-breakdown

• Obviously, some countries apply the “inventory-first-approach” in a very crude way:

– e.g. linking broad inventory-classes (Common Reporting Format, CRF) to NACE 2-digit activities (e.g. all transport related emissions are attributed to the transport services NACE 60-63)

– CORINAIR’s SNAP97 classes seem not be available in all countries; instead CRF is used

7 Estimating EU aggregates (Stephan)

• What needed to be estimated?

• Methodologies for estimation used

Estimation of EU aggregates

• time series 1995 to 2004,

• for several EU-aggregates: EU15, EU25 and EU27

• at A36-level of disaggregation

• for 8 air pollutants (CO2, N2O, CH4, SOx, NOx, NH3, CO, NMVOC), and

• 2 energy uses

.

Estimation of EU aggregates

Questions?

Workshop outline

1. Introduction


3. Bridge table






103

Use of NAMEA dataUse of NAMEA data

Decoupling indicators

Data requirements:

• Consistent time series for air emissions and economic data – with the same years

• Economic data – constant basic prices

• Same groupings (NACE, households)

Presentation

• Often indexed to a single year – usually 1990 because of Kyoto

Source for examples: http://www.ssb.no/english/subjects/09/01/nrmiljo_en/

8 Input-output analysis?

• Air emissions are re-attributed to products finally consumed

• Priority consumer areas can be identified

– Eating & drinking

– Housing & infrastructures

– Transport of persons & goods

• Taken together this causes 74% of material use and 70% of global warming potential while all other categories together only account for the remaining third

8Decomposition

Structural Decomposition Analyses (SDA)• a methodology to determine several factors‘

influence • on the development of a certain variable

• e.g.• development of CO2-emissions in the EU• Can be „decomposed“ into several factors or

effects

Decoupling of environmental pressures from total economic output, EU25 1995-2004

Global Warming Potential (CO2-

equivalents)

Acidification Potential (SO2-equivalents)

Tropospheric Ozone Forming Potential

(NMVOC-equivalents)

Economic Output (in millions of PPP-

converted 2000-Euros)

50

60

70

80

90

100

110

120

130

140

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Ind

ex

1995

= 1

00

Structural Decomposition – Global Warming Potential – EU25 – change 1995-2004

+0.7%

+23.9%

-2.3%

-20.9%

-25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0

total industries

% of total GWP in 1995

Total change Total output Economic structure Emission intensity


Angelica Tudini

“Making the users aware”

Luxembourg, September 2007



Uses of NAMEA are potentially manyfold but…

need for “educating” the users to the potential of using the accounting approach for analysis and policy

making



The Italian experience: Istat and Public Investment Evaluation Unit (UVAL) formerly belonging to Ministry of Economy and Finance and now to Economic Development Ministry – [ provides technical support to public administrations; specific tasks include to help improve effective spending and to favour better performance of European structural funds]

One of the main aims: identifying ways in which environmental accounting can improve the design, monitoring and evaluation of development policies



Relevant output in this context:

examples of policy-makers’ questions concerning environmental issues, to which environmental accounting data can provide proper answers

One of the outputs

“Development policies and the environment: using environmental accounts for better decision making”

(htpp://www.dps.mef.gov.it/materialiuval)



Questions-answers: a framework

POLICY-MAKER QUESTIONS

Choice of objectives

Allocation among forms

of capital

Allocation among

territories

Choice of policy instruments

ENVIRONM. ACCOUNTING

MODULES

in what way can DIFFERENT

ENVIRONMENTAL ACCOUNTING MODULES be used for A SPECIFIC

TYPE OF ALLOCATIVE DECISION

in what way can

A SPECIFIC ENVIRONMENTAL ACCOUNTING

MODULE be used for the DIFFERENT

TYPES OF ALLOCATIVE DECISIONS



Allocative decisions by kind and related policy-maker questions

kind of allocation

examples of questions

among different forms of capital

To what extent is the natural resources’ intake needed to satisfy the key economic sectors’ requirements?



kind of allocation


among different target groups

• What is the relationship between the economic performance and the environmental performance of various production activities?

• Are the economic activities that pollute the most the same ones that spend the most on environmental protection?



kind of allocation


among distinct territories

• Are there significant differences among territories in terms of the availability of various natural resources and their quality?

• Are the territories with the greatest pollution and degradation the same ones that spend the most on

environmental protection?


2007 Training and Workshop on NAMEA The case of Italy: some lessons learnt

• money for the project obtained from a public fund for the enhancement of knowledge in general, not from a budget specific for environmental issues

Users’ interest

• users’ willingness to assess the potential of using environmental accounts due to their involvement in public expenditure

• examples of policy-makers’ questions concerning environmental issues to which environmental accounting data can provide proper answers

Users’ capacity to understand environmental accounting

• calculation of indicators identified as especially important

• focus on data regularly produced

Policy consulting

• Now casting

• Forecasting

• Country comparison

• Indicators / analysis

Documents

1 NAMEA-Air Workshop (Hybrid accounts – SEEA) 19 September 2007, Eurostat Luxembourg Julie L. Hass, Statistics Norway Angelica Tudini, Istat (Italy, Istat