Resource Use and Management Accounts - RUMEA Recent Developments and Current Situation Task Force 23-24 February 2010 Point 4 of the Agenda ICEDD asbl

Background Current situation Latest developments Overview Background: RUMEA from the SERIEE 1994 to the Reflection Group 2008-09 Current situation: RUMEA as it stands in the most recent paper for the London Group Latest developments: the use of the Classification of Resource Management Activities (CReMA) in the context of the Environmental Goods and Services Sector (EGSSS)

Background Current situation Latest developments RUMEA in the SERIEE 1994 The SERIEE 1994 presents in chapter X a preliminary view of the natural resource use and management account. The accounting framework is said to adhere to the main lines of the EPEA’s one. The same is for definitions, concepts and valuaton of the components of national expenditure for natural resource management. Thus the RUMEA, as the EPEA, is an « economically » oriented satellite account to the national accounts: it follows the rules of national accounting and it should be set, as it was for the EPEA, to be a « standard » economic statistic.

Background Current situation Latest developments RUMEA in the SEEA 2003 Chapter 5 of the SEEA 2003 describes a variety of resource use and management activities (together with environmental protection activities). The chapter describes supply and use tables to be used for describing products and the financing of activities related to natural resource use and management. The Natural resources accounts is part of the SEEA integrated systems of accounts in which, to the fullest extent possible, there is consistency from one account to another in terms of concepts, methods and definitions and classifications. The distinction between SEEA accounts (and thus also the RUMEA) and environmental statistics is the comparability of economic information with the SNA.

RUMEA: the results of the reflection group Background Current situation Latest developments RUMEA: the results of the reflection group Italy, which has already developed and tested a RUMEA for water as well as a classification for RUMEA purposes, led a reflection group created by Eurostat in order to lay down the foundations for developing a European-agreed RUMEA. The reflection group discussed mainly the scope and the classification of RUM activities. Some changes to the originally developed CRUMA were discussed and approved. The results have been used to present advances in the RUMEA field in the London Group which have commented on this and has decided to accept the classification developed by the reflection group and to move it to the UN expert group for adoption as an international standard.

RUMEA: current situation Background Current situation Latest developments RUMEA: current situation The scope of RUMEA The classification (CRUMA) of RUM activities Definitions and Concepts Units and grouping of units Transactions and aggregates Accounting systems Source: Istat, Natural Resource use and management expenditure accounts (version 25/09/2009), 2009

Background Current situation Latest developments RUMEA: The scope The scope of natural resource use and management is well defined in SERIEE1994 and SEEA2003 in terms of: natural resources addressed and types of activities and actions carried out for using and managing natural resources.

The scope of RUMEA: natural resources Background Current situation Latest developments The scope of RUMEA: natural resources In the SEEA (chapter 5) four main categories of natural resources are identified as relevant for RUMEA purposes: sub-soil assets, inland waters, forest resources, wild flora and fauna. In the SERIEE (chapter X) the same kinds of natural resources are identified, with the only difference that, within the “Mineral and energy resources” group, fossil energy and raw materials are shown separately. As far as biological resources are concerned, both in the SEEA and the SERIEE the categories identified as relevant for RUMEA purposes relate only to non-cultivated resources . Thus, natural resources relevant for RUMEA are: 2. Raw materials, i.e. Minerals a. Metal ores and concentrates b. Non metallic minerals i. industrial minerals ii. construction minerals 3. Inland waters 4. Natural forest resources 5. Wild flora and fauna 1. Fossil energy a. coal b. oil c. gas d. other (e.g. bituminous shale)

The scope of RUMEA: types of activities and actions Background Current situation Latest developments The scope of RUMEA: types of activities and actions SEEA (table 5.3) and SERIEE (§10048) take into account activities and actions aiming at managing natural resources and reducing their intake as well as exploration and exploitation activities. The main kinds of activities identified by SEEA and SERIEE are: research for new resources, withdrawals from existing resources, activities aimed at reducing withdrawals (recovery, recycling, saving or substitutions of resources), administration and regulatory activities and in general activities of natural resource management authorities, monitoring, control and surveillance, data collection and statistics, R&D activities in the field of natural resource use and management.

The scope of RUMEA: types of activities and actions Background Current situation Latest developments The scope of RUMEA: types of activities and actions “RM activities” Activities aimed at preserving natural resource stocks activities aimed at reducing withdrawals: recovery, reuse, recycling, savings, substitution of natural resources replenishment activities: increases/ recharges of natural resource stocks (for renewable resources, i.e. inland waters, forest and wild flora and fauna) natural resource administration and regulation activities carried out by the general government (including e.g. the elaboration of plans, the release of any kind of licenses and permits for exploiting resources, the enforcement of quotas, …) monitoring, control and surveillance (including the control on the observance of licenses, permits, quotas, …), measurement, inventories, data collection and the like teaching, training, information and communication activities R&D activities in the field of natural resource use and management “RU activities” Activities relating to exploration, withdrawals and distribution of natural resources research and exploration for new reserves and resources withdrawals from existing resources management and maintenance activities carried out by the public or private authorities in charge of the direct management and exploitation of the reserves of natural resources distribution of natural resources (only for inland waters)

RUMEA: The classification Background Current situation Latest developments RUMEA: The classification While the scope of the RUMEA can be traced out from the SERIEE 1994 and the SEEA 2003, no classification has been set up so far for RUMEA purposes. A Classification of resource use and management activities (CRUMA 2009) has been obtained starting from the Italian version and adjusting it by endorsing comments and proposals from the London Group and the UN Expert Group on International Economic and Social Classifications. The CRUMA 2009 has been adopted by the London Group and has been reviewed by the UN Expert Group on International Economic and Social Classifications The CRUMA 2009 is on its way to became an international standard.

RUMEA: The classification in details Background Current situation Latest developments RUMEA: The classification in details 10 Use and management of water resources 10.1 Reduction of the intake 10.2 Reduction of water losses and leaks, water reuse and savings 10.3 Replenishment of water stocks 10.4 Direct management of water stocks 10.5 Measurement, control, laboratories and the like 10.6 Other activities 11 Use and management of natural forest resources 11.1 Reduction of the intake 11.2 Reduction of the consumption of forest (wood and non wood)-related products 11.3 Reforestation and afforestation 11.4 Forest fires 11.5 Direct management of forest areas (as a resource and not as a habitat) 11.6 Measurement, control, laboratories and the like 11.7 Other activities 14 Use and management of minerals 14.1 Reduction of the intake 14.2 Reduction of minerals use through the reduction of scraps and the production and consumption of recycled materials and products 14.3 Direct management of mineral stocks 14.4 Measurement, control, laboratories and the like 14.5 Other activities 15 Research and development activities for natural resource use and management 15.1 Water resources 15.2 Natural forest resources 15.3 Wild flora and fauna 15.4 Fossil energy 15.5 Minerals 15.6 Other R&D activities for natural resource use and management 16. Other natural resource use and management activities 16.1 General administration of natural resources 16.1.1 General administration, regulation and the like 16.1.2 Environmental management 16.2 Education, training and information 16.3 Activities leading to indivisible expenditure 16.4 Activities not elsewhere classified 12 Use and management of wild flora and fauna 12.1 Reduction of the intake 12.2 Replenishment of wild flora and fauna stocks 12.3 Direct management of wild flora and fauna stocks 12.4 Measurement, control, laboratories and the like 12.5 Other activities 13 Use and management of fossil energy 13.1 Reduction of the intake 13.2 Reduction of heat and energy losses, and energy savings 13.3 Direct management of the stocks of non-renewable energy sources 13.4 Measurement, control, laboratories and the like 13.5 Other activities

CRUMA: main characteristics Background Current situation Latest developments CRUMA: main characteristics It is a functional multi-purpose classification to be used for characteristic activities, as well as products, producers, actual outlays and any kind of transactions; It is complementary to CEPA, i.e. there is no overlapping with CEPA; It is structured similarly to CEPA, by cross-cutting kinds of activity and natural resources (Table 5); It is broken down (classes, i.e. 1-digit categories) consistently with the classification of natural resources of the SEEA It is based on the “main purpose” criterion, which, as for CEPA, has to be applied mainly by considering the technical nature of the activity; It is consistent with the existing frameworks for economic and environmental accounting of natural resources (e.g. IEEAF – Integrated Environmental and Economic Accounting for Forests, SEEAW – System of Environmental-Economic Accounting for Water, SEEAF – Integrated Environmental and Economic Accounting for Fisheries, etc.) as well as the frameworks for statistics and accounts on environmental activities and expenditures (e.g. SERIEE, Data Collection Handbook on Environmental Goods and Services Sector – EGSS); It is consistent with COFOG, i.e. correspondences between CRUMA and COFOG are well established (Annex 3).

RUMEA: Concepts and Definitions Background Current situation Latest developments RUMEA: Concepts and Definitions Characteristic activities: the general concept is defined in the SNA and holds also for RUMEA Connected products: the general concept is defined in the SNA, within the wider concept of specific products, and holds also for RUMEA Adapted products, i.e. resource-efficient products: the concept holds also for RUMEA but: a) the stage at which these products are less resource intensive than equivalent normal products, i.e. only when they are produced or consumed/used (see Eurostat, EGSS, 2009); b) the extra cost criterion, for which it is to be decided whether it applies also for resource-efficient products Specific transfers: the general concept is defined in the SNA and holds also for RUMEA

RUMEA: Units and grouping of units Background Current situation Latest developments RUMEA: Units and grouping of units The same as for the EPEA: Grouping of units by Institutional sectors (the same as those of SNA: GG, NPISH, enterprises, households, ROW) and ISIC sector. Grouping of units according to the role played: characteristic producers (specialised, non-specialised, ancillary), non-characteristic producers users, beneficiaries, financers.

RUMEA: Transactions and aggregates Background Current situation Latest developments RUMEA: Transactions and aggregates The same kinds of transactions are defined as in the SNA: RUMEA will account for that part of national account transactions and aggregates that are devoted to the resource use and management Main aggregates: Output of environmental services, National expenditure, Financing of national expenditure, Net cost borne by institutional sector

RUMEA: Accounting systems Background Current situation Latest developments RUMEA: Accounting systems Supply and use framework of SEEA2003 The five accounting tables of SERIEE: Tables A, B, B1, C, C1 Accounting rules and methodologies as for the EPEA (SNA derived)

Background Current situation Latest developments The CReMA The CReMA is a subset of the CRUMA which deals exclusively with natural resource management activties. This classification has been just developed for being used in the context of the Environmental Goods and Sercvices Sector (EGSS). A trial data collection on the EGSS has just been completed and some results on the use of the CReMA are available.

The CReMA: availability of data Background Current situation Latest developments The CReMA: availability of data CReMA classes Countries

The CReMA: some results, corporations Background Current situation Latest developments The CReMA: some results, corporations EGSS Turnover – Corporations -Natural resources management activities

The CReMA: some results, general government Background Current situation Latest developments The CReMA: some results, general government EGSS Turnover – GG -Natural resources management activities

Resource Use and Management Accounts - RUMEA Proposed way forward Task Force 23-24 February 2010 Point 6 of the Agenda ICEDD asbl

Proposed way forward Write down the scope of the RUMEA (as it is for the EPEA, SERIEE § 2006 – 2009) Highlight and clarify the main purpose criterion For each resource domain: A list of characteristic activities A list of connected and adapted products for mandatory, recommended and possible inclusion, should be set up. A very useful input to that end is the Eurostat Data Collection Handbook on Environmental Goods and Services Sector (Eurostat 2009) and the results from the first collection of data A list of facilities Pointing out specific accounting problems for the domain List data sources, highlight potential gap in data availability Valuating the Tables for collecting data (see ST) Put together all the information in a new compilation guide or unify in one handbook the EPEA and RUMEA framework

Proposed way forward: draft table of contents for handbook Introduction A quick overview The RUMEA Framework The supply and use framework The RUMEA tables The Classification of Natural Resource Use and Management activities Main data sources Production Statistics Government accounts Other sources of data Examples of compilation of RUMEA tables Presenting RUMEA results

Many thanks for your attention Céline Martin cm@icedd.be Marco Orsini mo@icedd.be Maria Jose Lopez mjl@icedd.be ICEDD asbl Boulevard Frère Orban, 4 5000 Namur + 32 80 250 480