Classification of physical flows Part VI. Extensions of the Core System 23 October 2003 Classification of physical flows Roel Delahaye and Sjoerd Schenau Statistics Netherlands

Content Three subsystems Updates and improvements Boundary issues Introduction: objective Three subsystems Updates and improvements Boundary issues Link with other LG-issues

Objective: One consistent classification Part VI. Extensions of the Core System 23 October 2003 Objective: One consistent classification Compatible for all subaccounts Compatible monetary and physical accounts International comparisons The importance of consistent classifications.

products and residuals) Conceptual framework Sub accounts Applications PSUT Physical supply and use tables by type of material (products, used and unused raw materials, ecosystem inputs, waste and waste water flows within the economy, residuals) and by economic (production branches, final uses) and environmental Activities EW-MFAcc Economy-wide material flow accounts (excl. water) Input of materials to and output of materials from the domestic economy by type of material (raw materials, eco-system inputs products and residuals) applications Specific PSUT Physical supply and use tables for specific groups or categories of material, like energy, metals, other minerals, water, biotic materials, air emissions, waste applications PIOT: Physical input output tables

Part VI. Extensions of the Core System 23 October 2003 Three subsystems

Part VI. Extensions of the Core System 23 October 2003 Three subsystems MFA including emissions accounts: * in kilograms * excluding bulk water flows Energy accounts: * in Joules * including non-material flows Water accounts: * in cubic meters

Part VI. Extensions of the Core System 23 October 2003 Question 1: Are these three subsystems a starting point for developing classifications? Question 2a: Should overlapping cross-sections be classified as much as possible according to unique classifications? Question 2a: What are the most important problem areas in this respect?

Updates and improvements (I) Part VI. Extensions of the Core System 23 October 2003 Updates and improvements (I) Energy accounts: * No specific classification in current SEEA * Classification under development by Oslo group Recommendation 1: The classification of energy flows in the SEEA should be aligned as much as possible with the classification of energy statistics and the CPC. Water accounts: Recommendation 2: Future work should involve reconciliation the water flows classifications in the SEEA with the classification in the SEEAW.

Updates and improvements (II) Part VI. Extensions of the Core System 23 October 2003 Updates and improvements (II) Material flow accounts: Recommendation 3: Future work should involve reconciliation of the SEEA classification of material flows with the classifications of the Eurostat MFA questionnaire. Waste accounts: Recommendation 4: Future work should involve reconciliation of the SEEA waste classification with classifications of the European Waste Statistic Regulation.

Part VI. Extensions of the Core System 23 October 2003 Boundary issues (I) Residuals versus products : * Solid waste can be referred to as residuals with a commercial value. * Inconsistent with the SNA Recommendation 5: Concerning the terminology in the SEEA, it should be specified when solid waste refers to residuals or products. * Waste product classification of CPC does not match waste residual classification. Recommendation 6: The classifications of the waste products in the CPC should match the waste residual classification.

Part VI. Extensions of the Core System 23 October 2003 Boundary issues (II) Biological resources versus products: * In EW-MFAcc the harvest of cultivated resources are regarded flows from the environment to the economy. * According to the SNA/SEEA conventions the harvest of cultivated resources must be regarded as flows within the economy. Recommendation 7: The classification of cultivated biomass in the SEEA should be in line with the outcome of the discussion on the relation between the OECD guidance manual on EW-MFAcc and the SEEA 2003.

Reminder Classificastion issues may depend to some extent to the outcome of other LG papers and discussions in working groups Links between OECD handbook on EW-MFAcc and the SEEA. Standardisation energy flows agreed upon by the Oslo group. Issue paper on environmental accounts indicators. Issue paper on asset classifications.