Implementation of energy accounts in Finland The 7th Oslo Group Meeting, Helsinki Jonna Hakala

Background Energy accounts were the first application of Natural resource accounting compiled at Statistics Finland in late 1980s, on 1985 data The application was updated in 1995, on 1990 data Physical Energy Flow Accounts are one module of environmental accounting regulation of the EU The module is expected to come into force in 2015, and accounts on years have to be reported to Eurostat in December 2017 Project on energy accounts in Finland started in spring Jonna Hakala

Objectives Energy accounts compatible with other modules of physical and monetary environmental accounts, such as Air emission accounts Economy-wide material flow accounts Environmentally related taxes by economic activity Compilation system of physical supply and use tables for energy flows in Finland Identification of elements of energy accounting calculation system that could be integrated into planned production system of energy statistics Jonna Hakala

Risks The biggest risk of the project is the availability and quality of the data at detailed classification levels required for product flows and branches of industry (NACE A*64) Especially the energy use of the service sector may be problematic to disaggregate into such detailed level Jonna Hakala

Organisation Project group consists of experts on environmental accounts energy statistics air emission statistics and accounts monetary supply-use tables Units represented in the steering group Environment and Energy Statistics Greenhouse Gas Inventory National Accounts Jonna Hakala

The main steps Identification of data sources Energy statistics, Energy balance Data from monetary supply-use tables Other data sources Development of methodology and calculation system Identification of links to production system of energy statistics Testing the system of energy accounts with 2010 data Improvements to calculation system Supply-use tables Jonna Hakala

Energy accounts Physical Energy Flow Accounts (PEFA): Supply-use tables including all energy forms and fuels Basic structure adopted from the System of Environmental- Economic Accounting (SEEA) Natural inputs, products, residuals; more than 100 items All branches of industry (NACE A*64), households, accumulation, import and export, environment Unit: Terajoule The main differences with respect to energy statistics: Branches of industry highly disaggregated, especially in manufacturing industries and services Residence principle as in National Accounts Jonna Hakala

Flows in energy accounts NATURAL INPUTS (RESOURCE FLOWS, energy statistics classification) Non Renewables Uranium and thorium ores Anthracite Coking coal Other bituminous coal Sub-bituminous coal Lignite/Brown Coal Peat Crude oil Natural gas liquids Other hydrocarbons Natural gas Renewables Hydro power Wind power Solar thermal (resource: solar radiation) Solar PV (resource: solar radiation) Tide, Wave and Ocean Geothermal energy Biomass for energy use PRODUCTS (PRODUCT FLOWS, CPA classification, 69 items) Other vegetal material and waste Wood Hard coal Lignite Peat Crude oil Black liquor … Motor gasoline, kerosene Electrical energy Biogas... Municipal wastes (renewables) Municipal wastes (non-renewables) Industrial wastes RESIDUALS (RESIDUAL FLOWS) Waste (without monetary value) Losses during extraction/abstraction Losses during distribution/transaction Losses during storage Dissipative heat Jonna Hakala

Branches of industry in energy accounts Jonna Hakala

Summary Good starting points Clear target: physical input and output of energy by fuel/product and by branch of industry Close co-operation between energy statisticians, environmental accountants and national accountants Domestic demand of energy accounts connected to air emission accounts, material flow accounts, environmental taxes and monetary supply-use tables Challenges Very detailed level of product flows and branches of industry (NACE A*64), especially on services Modelling and estimates needed for disaggregation and residence principle -approach Data confidentiality of some branches and products Jonna Hakala