MFA Training Workshop Eurostat / EEA / ETC-WMF Topic 1: Basics of economy-wide MFA and Domestic Extraction Used (DEU) Helmut Schütz MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Introductory remarks Initial work in the 1960s: industrial metabolism (Bob Ayres) Economy-wide MFA started in early 1990s in Austria (IFF, Vienna), Japan (Environment Agency) and Germany (Wuppertal Institute and FSOG) Eurostat Methodological Guide in 2001 Currently: many (supra-)national MFA studies including important contributions to further development of the methodology and identification of critical data issues → Where we are now What is needed in the future: international/global harmonization and refined documentation of methodology, and maybe a practical guide and guidance for users. MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

The Focus: Economy-wide MFA Basic reference: Eurostat Guide on economy-wide MFA: (economy-wide) Material Flow Accounting, MFA A monitoring system for national economies based on methodically organised accounts and denoting the total amounts of materials used in the economy. Material flow accounting enables monitoring of total consumption of natural resources and the associated indirect flows as well as calculation of indicators. Material Flow Analysis, MFA An evaluation method which assesses the efficiency of use of materials using information from material flow accounting. Material flow analysis helps to identify waste of natural resources and other materials in the economy which would otherwise go unnoticed in conventional economic monitoring systems. MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Economy-wide MFA: Balance scheme without water and air Source: Eurostat 2001 Wuppertal Institut SBr-/01

General References: Eurostat Guide on economy-wide MFA (Eurostat 2001a) ETC/WMF website and reports (e.g. 2004) EEA Technical Reports 55&56 (Bringezu and Schütz 2001a, Wuppertal Institute) Wuppertal Institute: past and current MFA development. MIPS Guide (Schmidt-Bleek et al. 1998; Ritthoff et al. 2002) EUROSTAT (2002): Material use in the European Union 1980-2000: Indicators and analysis. → IFF, Vienna. IFF Handbook of Physical Accounting (Schandl et al. 2002) National MFA Studies (e.g. Italy by ISTAT – Barbiero et al. 2003; Czech Republic – Scasny et al. 2003; Finland by Thule Institute/Statistics Finland – Mäenpää et al.) → comprehensive references list in annex MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Definition: DEU Domestic extraction used (DEU) accounts for raw materials extracted or harvested on the economy‘s territory within a given period (one year). Raw materials in this respect are those which enter the domestic economy for further processing or consumption. Unused domestic extraction (→ UDE) associated with DEU is excluded. It may, however, be a source for direct material inputs contributing to DEU (e.g. soil excavated and reused in constructions). DEU is one of the two main components of Direct (used) Material Inputs (DMI), the other one being Imports. DMI comprises all materials (except water and air) that enter the economy for further use in production or consumption. MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Main material groups: DEU Fossil energy carriers (fossil fuels) → Non-renewables Minerals → Non-renewables Biomass → Renewables NB: The MIPS concept comprises 5 material groups: - abiotic raw materials (DEU: fossils and minerals) - biotic raw materials (DEU: biomass) - Soil (Erosion as part of → UDE and → IF of imports/exports, memorandum item) - Water (not part of economy-wide MFA, but of balancing items, → NAMEA, EU Headline indicator) - Air (part of balancing items → NAS) MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Fossil energy carriers Coal (hard coal and brown coal or lignite) Crude oil incl. NGL Natural gas (purified for distribution to consumers – standardized as in energy statistics/balances) Other (crude oil gas, peat for fuel, oil shale, other) → S from natural gas goes to industrial minerals NB: Basics, standard template for data, conversion factors, references → Excel workbook „Template DEU fossils and minerals“ MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Minerals Ores (metals): iron and non-ferrous Industrial minerals Construction minerals Industrial and/or Construction minerals (allocation unclear; e.g. clays, limestone, sands, natural stones) NB: Basics, standard template for data, conversion factors, references → Excel workbook „Template DEU fossils and minerals“ Plausibility checks: → Excel worksheet „accounting scheme for construction materials“ or following sheet MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Construction Minerals MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Biomass – conventional account from Agriculture: harvest (statistics) from Agriculture: by-product of harvest (statistics or estimates) from Agriculture: grazing of livestock (statistics or estimates) from forestry (wood, other) from fishing (marine, inland) – aquaculture? from hunting Other biomass (honey, mushrooms, etc.) NB: → Eurostat Guide, p. 26 and Annex 3 MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Biomass – conventional account Eurostat Guide: 5.25 All (domestic) biomass is counted which is reported by agricultural harvest statistics, logging statistics, fishery statistics and hunting statistics. In addition, the input of biomass by grazing of animals can be taken from feedstuff statistics or can be estimated based on land use or nutrition balances of livestock. Feedstuff statistics will often also report on domestic biomass inputs of sugar and fodder-beet leaves, and of catch crops. Internationally, a great part of biomass input can be taken from the website of the Food and Agriculture Organization (FAO - http://apps.fao.org). MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Biomass - supplement from sustainable cultivation (eco-farming, eco-forestry, agro-forestry, etc.) for food or other uses (energy, materials for manufacturing, other) by intensity of land use (degrees refering to e.g. use of mineral fertilizers and pesticides, erosion risk, etc.) MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Accounting conventions Use for further processing or consumption (whether reported or not in official statistics: e.g. some feedstuffs, private or ancillary activities, small-size enterprises) Reported actual (gross or fresh) weights, except for some special cases as follows. (Supplement dry weight accounts) Crude ore or run-of-mine concept after Eurostat Guide: 5.12 … In this Guide it is recommended to base the accounts on the ‘run of mine’ concept and to always account for the crude ore (see also Isacsson et al. 2000). If primary data are only available for concentrates, these should be converted back to the crude ore equivalent. Crude ore extracted should be considered a direct material input and part of DMI and DMC. MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Accounting conventions MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Accounting conventions Standardized water contents after Eurostat Guide: . 5.01 …For some special cases where reported data must be complemented by estimates (e.g. fodder plants taken up by grazing livestock) it is recommended to convert these into a weight that is equivalent to that of products typically reported in statistics so as to render reported and estimated data comparable. This involves using a ‘standardised water content’. For most bulk biomass materials (timber, cereals, hay) such a standardised water content will be around 15% of total product weight… → Excel sheet: „accounting scheme for biomass from agriculture“ with plausibility checks or following sheet MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Biomass from agriculture MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Feedstuff coefficients: annual variations Total Source: German Ministry of Agriculture Wuppertal Institut HSc-/2002

Feedstuff coefficients: annual variations Total Source: German Ministry of Agriculture and own calculations. Wuppertal Institut HSc-/2002

Feedstuff coefficients Source: Malik, Wuppertal Institute, unpublished. Wuppertal Institut HSc-/2002

Livestocks: annual variations Total Source: German Ministry of Agriculture Wuppertal Institut HSc-/2002

Feedstuff coefficients Sources: Malik, Wuppertal Institute, unpublished; Mäenpää and Vanhala 2002 – personal communication. Wuppertal Institut HSc-/2002

DEU: Accounting conventions Standard physical conversion factors: E.g. energetic units, weights, dimension, densities (e.g. in Ritthoff et al. 2002) Variable conversion factors: E.g. heat values of energy carriers (e.g. kJ per kg from energy statistics, examples in Ritthoff et al. 2002), densities of crude natural gases, other volume/weight ratios (e.g. wood, peat, soil, stones) MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Conversion factors (example) MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Data sources General rules: - Prefer original national data sources to international or re-produced ones, and contact (national) experts in critical cases. - Check for limits of reporting, perform plausibility checks for most critical items (green biomass, construction materials). Data sources in general: - Fossil fuels: Energy statistics or energy balances, NAMEA, (International: OECD-IEA) - Minerals: Statistics of mining and quarrying industries; Statistics of Industrial Associations, (Inter-)National production statistics (USGS, UN, PRODCOM), Metal balances - Biomass: Statistics of Agriculture, Forestry, Fishing, Hunting; Standardized feedstuff statistics (International: FAOSTAT), Supply-Use balances MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

DEU: Data sources: potential limitations Basic statistical data may be wrong, misleading, incomplete and/or inconsistent over time and across countries (e.g. USGS, data for construction minerals and differentiation towards industrial minerals, fodder plants) Official statistics do not report the total weight of materials but only specific contents (run-of-mine concept for metals) Statistical data in time series reveal individual gaps or different references (e.g. USGS) International statistics have to be used instead of specific national statistics (leading to many of the general problems) Data required to account for material indicators are not available from statistics (uncertainties associated with estimates) MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

Selected construction material flows Sources: Federal Statistical Office Germany, Association of German Gravel- and Sand Industry, Federal Association of Stones and earths Industry, Koensler 1997, Walker and Roos 1996, Wuppertal Institute. Wuppertal Institut HSc-/2002

International vs. National Datasources Sources: German Ministry of Agriculture etc., Statistics of coal-, oil- industry, Statistics of Ministry of Economy and mining authorities of Federal States, Association of German Gravel- and Sand-Industry, Federal Association of stones and earths industry, Federal Institute of Geosciences and Raw Materials. USGS: The minerals industry of Germany, FAOSTAT: apps.fao.org Wuppertal Institut HSc-/2002

DEU: Requirements for further development Domestic Extraction Used (DEU) requires further standardization with regards to classification of material categories and accounting conventions, in particular for green biomass (standardized water contents), and for minerals (crude ore or run-of-mine concept, diversion between industrial minerals and construction minerals). This should also lead to an unambiguous accounting for DEU versus Unused Domestic Extraction (→ UDE). Further development of particular accounts (e.g. DEU construction minerals) to be formulated on empirical results and individual priority setting for improvement. MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA

MFA Training Workshop, Luxembourg, 14-15 June 2004 Wuppertal Institut HSC/2004/MFA