NAMEA-Air Workshop (Hybrid accounts – SEEA)

1. NAMEA-Air Workshop(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

2. Workshop outline – Questions are encouraged! • Introduction • What needs to be corrected / added to the official air emissions data (Kyoto) to get to NAMEA? • Bridge table • Emissions approach • Energy data first approach • Special topics / Questions / areas that need improvement • Estimating EU aggregates • Use of NAMEA data

3. 1. Introduction Julie Hass – Statistics Norway

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

5. 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.

6. Environment and economy: figures into a picture

7. 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)

8. 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

9. 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”

10. 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 consumptionTime 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

11. 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.

12. Mouse / Elephant (focus should be on the elephant!) You want to avoid surprises!

13. Surprise... it’s a 400 kg gorilla!!!

14. 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

15. Questions?Workshop outline • Introduction • What needs to be corrected / added to the official air emissions data (Kyoto) to get to NAMEA? • Bridge table • Emissions approach • Energy data first approach • Special topics / Questions / areas that need improvement • Estimating EU aggregates • Use of NAMEA data

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

17. Transportation in hybrid/NAMEA accounts is a big challenge

18. 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?

19. 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)

20. Ocean transport International air transport What does Norway correct? What should Norway correct? • Ocean transport • International air transport • International fishing • International land transport – fuel purchases outside Norway • CO2 from biofuels

21. 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

22. 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

23. Training and Workshop on NAMEA Angelica Tudini “From CORINAIR to NAMEA total emissions: what does Italy correct” Luxembourg, September 2007

24. What does Italy correct? Our starting point: CORINAIR TOTAL emissions(from anthropogenic activities) Not the same as using the UNFCCC/EMEP totals as starting point!

25. What does Italy correct? Our objective: NAMEA TOTAL emissions: 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 journeys EMIR(I): emissions of resident units due to international journeys leaving from Italy EMIR(A): emissions of resident units due to international journeys leaving from abroad and arriving in Italy

26. The domestic component only is included in UNFCCC reporting The example of the Italian NAMEA - Air Transport What do we have in CORINAIR : • domestic air transport • international air transport (estimates of international air transport emissions are based on the number of incoming international flights regardless of the nationality of the company)

27. The example of the Italian NAMEA - Air Transport 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) How do we single out EMIR(A)  andadd EMIR(I)??

28. The example of the Italian NAMEA - Air Transport How do we single out EMIR(A)  andadd EMIR(I)?? 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 EMIR(I) = EMIR(A)

29. The example of the Italian NAMEA – International shipping What do we have in CORINAIR : • domestic shipping EMIR(d) +EMINR(d) • international shipping EMIR(I) + EMINR(I)

30. The example of the Italian NAMEA – International Shipping What do we need for NAMEA: EMIR(d)  + EMIR(I) + EMIR(A)

31. The example of the Italian NAMEA – International shipping Some numbers

32. The example of the Italian NAMEA – International Shipping How do we single out EMIR(d) + EMIR(I)  andadd EMIR(A)?? EMIR(d): [EMIR(d) + EMINR(d)] = GR(d) : [GNR(d) + GR(d)] EMIR(I): [EMIR(I) + EMINR(I)] = GR(I) : [GNR(I) + GR(I)] 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(A): emissions estimated consistently with CORINAIR methodology

33. The example of the Italian NAMEA Road Transport - 1 What do we have in CORINAIR for road transport processes (rt) : EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) summed up! i.e. emissions of resident as well as non resident units due to domestic journeys and to international journeys leaving from Italy

34. The example of the Italian NAMEA Road Transport - 1 For all road transport processes (rt) : EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) What do we need for NAMEA: EMIR(d)  + EMIR(I) + EMIR(A) i.e. emissions of resident units only for domestic and international journeys including those leaving from abroad How do we subtractEMINR(d) + EMINR(I) andadd EMIR(A)??

35. For example Road Transport Work on passenger and goods transport separately For 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

36. Road Transport Where: 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 is obtained in a similar way

37. The example of the Italian NAMEA – Road Transport Some numbers

38. Road Transport For goods road transport EMI(rt) = EMIR(d) + EMINR(d) + EMIR(I) + EMINR(I) What do we need for NAMEA: EMIR(d)  + EMIR(I) + EMIR(A) TG = GR(d) + GNR(d) + GR(I) + GNR(I)

39. Road Transport

40. Road 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.

41. Road Transport Some numbers

42. Questions?Workshop outline • Introduction • What needs to be corrected / added to the official air emissions data (Kyoto) to get to NAMEA? • Bridge table • Emissions approach • Energy data first approach • Special topics / Questions / areas that need improvement • Estimating EU aggregates • Use of NAMEA data

43. 3. Bridge table

44. Norway’s bridge table (draft)

45. 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

46. 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 UNFCCC – Table 10s

47. Italy’s bridge table

48. Questions?Workshop outline • Introduction • What needs to be corrected / added to the official air emissions data (Kyoto) to get to NAMEA? • Bridge table • Emissions approach • Energy data first approach • Special topics / Questions / areas that need improvement • Estimating EU aggregates • Use of NAMEA data

49. 4. Emissions Approach Angelica Tudini, Istat

50. Training and Workshop on NAMEA Angelica Tudini “From CORINAIR to NAMEA activity emissions” Luxembourg, September 2007