OECD PROGRAMME ON MATERIAL FLOWS AND RESOURCE PRODUCTIVITY

1. OECD PROGRAMMEONMATERIAL FLOWS AND RESOURCE PRODUCTIVITY Meeting of the London Group on Environmental Accounting Meeting of the UN Committee of Experts on Environmental Economic Accounting June 2006, New York

2. OECD work on Material Flows and Resource Productivity Mandate and purpose • Implementing the OECD Council Recommendation (April 2004) • Responding to requests by G8 Heads of State and Government (Evian, June 2003; Sea Island, June 2004; 3R initiative, Japan) • Supporting OECD policy analysis and evaluation Foundations • OECD Seminar in 2000 • Member countries initiatives • International work: Eurostat guide; SEEA; research work

3. OECD work on Material Flows and Resource Productivity Co-operation and co-ordination • Within OECD • Environment Directorate • Horizontal programme on Sustainable Development • Statistics Directorate(accounting frameworks for SD statistics) • Science, Technology & Industry Directorate(I-O analysis & globalisation) • European Union: Eurostat and TF-MFA, EEA, DG ENV • United Nations: UNSD and UNCEEA; UNEP • Other: London Group; IWG Environment Statistics; Wuppertal Institut, IFF Vienna, WRI

4. 1- Brochure on MFA 2- Guidance on methodological and measurement issues 3- Guidance on the interpretation and use of MF and RP indicators 4- Measured indicators – pilot data set 5- Overall report on MF in OECD countries and beyond Guidance manual“Measuring material flows and resource productivity” OECD work on Material Flows and Resource Productivity Main outputs

5. OECD work on Material Flows and Resource Productivity Guidance manual - Coverage and structure • Part I: Overall framework for material flow analysis • Broad coverage of MFA tools • Clear articulation of purposes/uses of MFA tools • Links to policy questions and other measurement tools • Part II: Material flow accounts • Concepts, definitions, classifications • Types of accounts • Methodological issues • Part III: Material flow and resource productivity indicators • Purposes, definitions, selection criteria, etc. • Interpretation and use • Part IV: Developing MF accounts – implementation guide • Modular structure: menu of options based on decision treeincluding simplified, didactic part • To promote harmonised implementation • To be applied by countries according to own needs & context

6. Ecosystem inputs Broad sustainability considerations Water Flows do not exist Total materialthroughput Natural resources Sand & gravel Volume of flow (in tonnes) Resource efficiency & recycling Waste & emissions minimisation Carbon Fossil fuels Products Timber Paper Nutrients Steel Residuals Aluminium Fertiliser Chemicals policy PVC Solvents Heavy metals Pesticides Hazardous chemicals Flows are of minor interest Potential specific environmental impact (per tonne of material) OECD work on Material Flows and Resource Productivity What do we mean by “materials”?

7. Overall aggregates Broad sustainability considerations Water Flows do not exist Total materialthroughput Sand & gravel Volume of flow (in tonnes) Bulk flows Resource efficiency & recycling Waste & emissions minimisation Carbon Fossil fuels Timber Paper Nutrients Steel Industrial materials Aluminium Fertiliser Chemicals policy PVC Solvents Heavy metals Substances Pesticides Hazardous chemicals Flows are of minor interest Potential specific environmental impact (per tonne of material) OECD work on Material Flows and Resource Productivity What do we mean by “materials”?

8. Ecological: level of detail related to physio-chemical characteristics Ecologically relevant dimensions: detail related to physio-chemical characteristics Economic: level of detail in terms of partition of human activities Economically relevant dimensions: detail in terms of partition of human activities The MFA family of tools OECD work on Material Flows and Resource Productivity These two dimensions identify a space where all MFA tools can be placed The further from the origin, the narrower the coverage, in terms of substances and /or of economic activities Let us try and place the most common and somehow codified kinds of applications Its many different tools can be characterised according to their position with respect to two policy-relevant kinds of dimensions:

9. The tool provides complete coverage of the economy The tool provides complete coverage of the substances The tool only provides information on economy-nature exchanges The tool also provides information on internal flows of the economy The tool also provides information on internal flows of the economy and of nature OECD work on Material Flows and Resource Productivity

10. Physical flow accounts for water SFA NAMEA-type table for Air emissions NAMEA-type table for Energy carriers use LCA Economy-wide MFA PIOTs and other flow accounts for individual materials’ Ecologically relevant dimensions: detail related to physio-chemical characteristics The tool provides complete coverage of the economy NAMEA-type table Waste The tool provides complete coverage of the substances Aggregated PIOT The tool only provides information on economy-nature exchanges The tool also provides information on internal flows of the economy The tool also provides information on internal flows of the economy and of nature Economically relevant dimensions: detail in terms of partition of human activities Business level MFA OECD work on Material Flows and Resource Productivity

11. OECD work on Material Flows and Resource Productivity Approach • Core work: work in areas of common relevance where progress can be best obtained through joint efforts in the OECD and in member countries as a group. Priority given to areas where results can be obtained over a period of two to three years • Additional more detailed work: by countries

12. Physical flow accounts for water SFA NAMEA-type table for Air emissions NAMEA-type table for Energy carriers use LCA Economy-wide MFA PIOTs and other flow accounts for individual materials’ Ecologically relevant dimensions: detail related to physio-chemical characteristics The tool provides complete coverage of the economy NAMEA-type table Waste The tool provides complete coverage of the substances Aggregated PIOT The tool only provides information on economy-nature exchanges The tool also provides information on internal flows of the economy The tool also provides information on internal flows of the economy and of nature Economically relevant dimensions: detail in terms of partition of human activities Business level MFA OECD work on Material Flows and Resource Productivity

13. OECD work on Material Flows and Resource Productivity One of the areas where a common methodological ground is already present – so that results can be obtained in the short/medium term - is Economy-wide MFA. The following are among the issues that can be addressed, also in view of the SEEA revision process: • Terminology: • “economy-wide” • “materials” • System boundaries for biomasses • Optimal aggregation level for compilation and for presentation • by material • by economic activity • Indirect flows

14. OECD work on Material Flows and Resource Productivity Guidance manual – Main timelines • Expert consultation on drafts (Parts I-III): June-July 2006 • Preparation of revised drafts: July-August 2006 • Formal consultation with OECD member countries: September 2006  Meeting of the Working Group on Environmental Information and Outlooks (WGEIO): 11-13 October 2006 • Final revision: October-November 2006 • Editing and release: end 2006-early 2007