Agenda point 4 Water PSUTs – Open Issues NAMEA Task Force Meeting on Water Accounts 4 October 2011 Lutter/Ercin 4 October 2011

1 Soil Water Rainfed agriculture and forestry use natural water from the soil. The up-take of soil water by cultivated plants constitutes a flow from the environment to the economy. Two questions: How to record soil water flows in the PSUT-scheme, taking into account the concepts as laid down in SNA, SEEA and others? How to obtain estimates for soil water flows as statistics are not available? In water statistics a discussion seems to be still ongoing on whether soil water should be considered or not... 4 October 2011

Eurostat's position: soil water To consider the actual up-take of soil water by cultivated plants as a flow from the environment to the economy To record soil water use by agriculture and forestry industries To estimate soil water flows by employing models. Towards this end, Eurostat will develop a rather simple "standard approach" for estimating soil water flows based on internationally available input-data. 4 October 2011

2 Water incorporated in products So far, only two product groups are considered in the SUTs: Output of the water supply industry (CPA 36) & Steam and hot water (CPA35.30.11) It was decided by the TF to exclude the water incorporated in products other than the two mentioned. However, further products potentially incorporating significant amounts of water may be considered: CPA01 "Products of agriculture, hunting and related services" and CPA02 "Products of forestry, logging and related services" CPA10 "Food products" and CPA11 "Beverages“ CPA20 "Chemicals and chemical products" (e.g. including distilled water and other liquid products)“ Not taking into account the water incorporated in these product flows bears the threat that the supply and use tables cannot be balanced. 4 October 2011

Eurostat's position: water in products To consider water incorporated in products for the two cases CPA 10 (food products), and CPA 11 (beverages) To add accordingly these two CPA groups to the list/classification of water product flows 4 October 2011

3 Emissions from diffuse sources Agriculture and urban runoff are the two most important diffuse sources for emissions to water from non-point sources. SEEAW recommends to include diffuse emissions only from these two sources. Diffuse emissions to water, in particular N and P, from agricultural land have to be assigned to the agriculture industry (NACE 01 and further breakdowns). They need to be estimated starting from information on fertilizer applications (via leaching rates). Urban runoff is the precipitation water falling onto built-up area which is collected by sewer systems (an assignment to individual industries and private households seems not possible). SEEAW suggests assigning the origin of these emissions to the sewage industry (NACE 37). 4 October 2011

Eurostat's position: diffuse emissions To consider diffuse emission to water from agriculture and assign them to agriculture industry (NACE 01) To consider urban runoff as diffuse emission source and assign it to the sewage industry (NACE 37) 4 October 2011

4 Temporary displacements of water and in-stream water uses Economy uses water in two ways: Abstraction = physical removal of water from the environment In-stream (or in-situ) use = without physically removing from the environment e.g. recreational and navigational purposes or fishing Following the recommendations made in SEEAW, abstraction should be recorded, in-stream use should not. SEEAW defines water abstraction as any displacement (relocation or temporary displacements) of water. Thus hydroelectric power generation and dewatering processes in mining and construction sectors are included. In-stream use of water by the economy is not recorded in supply and use tables, as they do not involve a permanent displacement of water. 4 October 2011

Eurostat's position: temporary displacements To record all water abstraction in PSUTs. This includes any temporary displacements or relocation. This includes water use by hydropower as well as water displaced by the mining and construction industry. Not to record in-stream use of water (in-situ use) 4 October 2011

5 Economic units: further disaggregation of electricity industry For the water PSUTs a high level of disaggregation is crucial for the identification of hot spots of water consumption, especially in the industries that are mainly dominant in water use. For some economic sectors, the NACE system does not sufficiently single out specific activities relevant for their significant water use. => Further disaggregation is necessary. Eurostat proposes a further disaggregation of "Electricity, gas, steam and air conditioning supply" (NACE 35) as follows: Electricity, gas, steam and air conditioning supply (NACE 35) Electric power generation, transmission and distribution (NACE 35.1) Production of electricity (NACE 35.11) Thermoelectric (new code – 35.11a) Hydroelectric (new code – 35.11b) Nuclear (new code – 35.11c) 4 October 2011

Eurostat's position: economic units To further disaggregate “electric power generation, transmission, and distribution" industry (NACE 35) into thermoelectric, hydroelectric and nuclear. 4 October 2011

Thank you! 4 October 2011