1. 1 Environmental Economic Accounting Water Resource Accounting for South Africa Robert Parry Application of National Accounts 6-8 June 2011

2. 2 Contents 1.Introduction & background 2.Data 3. Statistics South Africa’s involvement 4. Water resource accounting 5. Internal data audit/mining 6. Discussion document/results 7. Future initiatives & requirements

3. 3 1. Environmental Economic Accounting Environmental Information Economic Information Environmental & Economic Information Contribution of environment to economy Impact of economy on environment

4. 4 1. Applications of EEA Regular monitoring of resource supply and demand at a national and regional levels Data provision in support of natural resource management Terminology standardisation Development still required –Technical –Institutional

5. 5 2. Data requirements for EEA Developing EEA requires two types of data: –Physical data on stocks and flows of natural resources –Monetary data on the production, price and costs of natural resources

6. 6 2. Data requirements for EEA Physical data are collected by: –Department of Mineral Resources (DMR) –Department of Water Affairs (DWA) –Department of Energy (DoE) –Department of Environmental Affairs (DEA) Monetary data are collected by: –Stats SA (custodian of economic data) –Monetary data used to a limited extent in EEA

7. 7 2. Data requirements for EEA Stats SA has mandatory leadership in terms of the alignment, use and production of statistics Stats SA defines quality data according to South African Statistical Quality Assessment Framework (SASQAF) SASQAF draws a distinction between 'official' and 'national' statistics

8. 8 3. Stats SA involvement

9. 9 3. Stats SA initiatives StatsSA – National Accounts 2009: 4 staff appointments in EEA 9-year partnership with CEEPA network 14 EEA Documents published –Water (5) –Mineral (5) –Energy (2) –Land (1) –Fishery (1) Host of London Group (UN) in 2007 Core Member of London Group and Oslo Group (UN) UNCEEA

10. 10 3. History of WRA in South Africa EEA UN, 1993 SEEA UN, 1993 SEEAW UN, 2007 WRA SA CEEPA, CSIR, 2000 WRA SA StatsSA, 2002 WRA SA CEEPA & StatsSA, 2007 WRA SA CEEPA & StatsSA current DWA

11. 11 4. What does WRA provide for? Physical Accounting Monetary Accounting Hybrid Accounting Environmental stats & Economic classification According to SNA More detail than SNA data Allow variations in SNA accounting rules

12. 12 4. Hydrological cycle

13. 13 Water Supply and Use in The South African Economy-2000 (million m 3 ). Water supply and use in SA

14. 14 4. Physical supply & use tables (SUT) Standard Physical water supply table.

15. 15 4. Physical supply & use tables (SUT) Standard Physical water use table.

16. 16 4. Water supply and use in SA Environment Atmosphere and sea Natural MAR Surface water yield Ground water Soil water Ecological reserve Distributors DWA (total yield) Irrigation boards Water boards Municipalities ROW and other WMAs Production (SIC) Agriculture Dry land & irrigation Livestock Plantation Mining Electricity Manufacturing Trade & Services Domestic Urban & Rural SupplyDemand

17. 17 5. Internal data audit/mining Constraints to development of EEA –Reliance on other government department & statutory bodies Limited Development of EEA –Source data not official statistics –Standard industrial classification of all economic activities (SIC)

18. 18 5. Internal Data audit/mining Goals and objectives: – Identify EEA data within Stats SA. – Make improvements on identified data source. Methodologies: – Collect all Stats SA questionnaires. – Consultation with relevant survey areas. – Identified questionnaires, included in paper.

19. 19 5. Internal data audit/mining Findings: 21 questionnaires have EEA related questions. –Agriculture –General Household Survey –Non-Financial Census of municipalities Most questions in monetary terms. Questions not detailed enough. Data at municipal district & WMA levels

20. 20 6. Purpose of discussion document Assessment of potential for: –Extracting existing environmental data within Stats SA –Adapt Stats SA census and survey questionnaires –Propose framework for regular EEA reports Key Data points (46) –33 data point from Stats SA –13 data points from DWA

21. 21 Water Flow Account: Input-output tables for South Africa, 2000 6. Extent of data contribution Physical data source from Department of Water Affairs (DWA) Physical data source from Statistics South Africa

22. 22 6. Extent of data contribution Water Flow Account: Input-output tables for South Africa, 2000 Physical data source from Department of Water Affairs (DWA) Physical data source from Statistics South Africa

23. 23 6. Summary of Agriculture products, 2002 23 118 514 60012 744 803 24210 373 711 35812 075 336762 67916 396 3873 269 246Total 11 178 675 6009 608 364 4471 570 311 1536 024 464291 4171 401 291109 576Horticultural crops 11 939 839 0003 136 438 7958 803 400 2056 050 873471 26214 995 0963 159 670Field crops (R) (tons)(ha)(tons)(ha) Total production Irrigated production Dryland production Irrigated productionIrrigated area Dryland productionDryland area Crops Produced 55% agri produce by value Comprised 75% of this production 3 million ha16 million tons R23 119 million

24. 24 6. Municipal water distribution, 2006 2 943 991 51735 336 316346 841 4431 847 301 323714 512 435Total 45 728 2711 351 1534 744 48831 634 0527 998 579Berg 67 579 6091 996 8037 011 65046 750 44111 820 715Breede 111 998 2833 299 60512 186 46676 822 93619 689 276Olifants/Doorn 172 874 7005 071 96618 156 591119 348 87930 297 264Gouritz 153 912 9172 990 17824 425 87297 206 93929 289 929Fish to Tsitsikamma 69 381 1582 026 19712 723 19241 351 04913 280 720Lower Orange 99 873 2334 428 55011 081 90161 781 29822 581 484Upper Orange 105 022 1881 307 66416 925 61863 096 77523 692 131Mzimvubu to Keiskamma 135 355 313248 44111 617 25077 954 91045 534 712Mvoti to Umzimkulu 120 905 9642 140 96814 248 04985 081 85319 435 094Lower Vaal 67 717 9323 028 6895 774 72744 424 97414 489 542Middle Vaal 605 403 3422 658 53668 188 262377 187 254157 369 290Upper Vaal 157 700 032225 55113 080 57490 657 90253 736 005Thukela 210 882 480434 83818 762 523121 195 83470 489 284Usutu to Mhlatuze 44 051 921508 1177 741 00225 338 51410 464 287Inkomati 243 612 4871 049 74032 156 042149 969 59460 437 111Olifants 453 071 7611 032 33351 740 622287 330 515112 968 291Crocodile West Marico 23 114 038450 1524 767 08914 693 0693 203 728Luvuvhu to Letaba 55 805 8881 086 83511 509 52735 474 5357 734 991Limpopo TotalWater for own use Free basic water suppliedWater soldWater lostWater Management Area 1 847 million m 3 347 million m 3 35 million m 3 715 million m 3

25. 25 6. Mining sector, 2004 388 340,204Total 3,648,83,189Other mining 0,488,80,422Dimension stone 0,998,80,864Limestone 1,368,81,191Phosphate and other chemicals 1,598,81,398Diamonds 3,308,82,894Stone quarrying, clay and sandpits 26,828,823,512Coal 28,028,824,572Iron ore 49,868,843,720Platinum Group Metals 60,438,852,990Chrome, manganese and other metal ores 211,518,8185,451Gold and uranium (million m 3 ) Cents/m 3 R' million Water useEstimated priceWater use Mining Sector R340 million8,8cents per m 3

26. 26 6. Other sectors 1,0995,295,8132004Accommodation 27,2675,29144,2412004Personal Service 3,9835,2921,0722004Construction 61,0245,29322,8182006Business Water volume (million m 3 )Water price (R/m 3 ) Water use (R' million)YearSector R6 million1 million m 3 R323 million 61 million m 3

27. 27 6. Time spent for collection of water 16%5 9005 098147 498 527127 455 625Total 41%965,98685,6524 149 60417 141 191Usutu to Mhlathuze 36%246,60181,926 164 9774 548 055Upper Vaal 19%133,23111,803 330 7622 795 096Upper Orange 10%461,92418,3711 547 93710 459 309Thukela 1%5,355,31133 803132 646Olifants/Doorn 7%351,25328,408 781 2568 209 876Olifants 9% 1 637,74 1 500,9640 943 50137 524 061Mzimvubu to Keiskamma 6%810,09767,7020 252 23619 192 381Mvoti to Umzimkulu 13%34,3030,25857 432756 214Middle Vaal -17%169,64204,814 240 9435 120 260Luvuvhu and Letaba 60%160,1099,844 002 4402 496 007Lower Vaal 81%11,566,39288 976159 718Lower Orange -16%225,86269,955 646 5306 748 710Limpopo 63%131,3780,543 284 1742 013 454Inkomati 29%14,1610,97353 898274 374Gouritz 25%222,54177,555 563 4504 438 859Fish to Tsitsikamma 50%283,87189,487 096 7564 737 004Crocodile (West) and Marico 23%6,044,92151 092123 089Breede 21%28,3523,41708 760585 322Berg (%)2006200520062005 Water Management Area ChangeOpportunity cost of labour (R' million)Total days spent collecting water 148 million p/dR5 900 million127 million p/d

28. 28 6. Salient features Salient features of updated Water Accounts for Agriculture –Actual irrigation water use & irrigation area –Improved estimate of soil water use by dryland crops –Analysis of agricultural water use by major crop type –Summary of irrigation water price

29. 29 6. Salient features Salient features of updated Water Accounts for municipal water supply –Breakdown of municipal water source –Breakdown of where municipality supply water –Breakdown of municipal water cost & selling price

30. 30 7. Future initiatives Future approach for EEA –Policy link as well as link between various accounts –Monetary accounts –Continuation of the EEA advisory committee –UNSD training on water accounts

31. 31 7. Future WRA requirements Current WRA have been developed based on DWA hydrological models: – On a national basis – Per Water management Area – Limited to physical data (no monetary data) – No regular data updates possible – Little appropriate water quality information Future usage of EEA: – Increase data intensity – Increase frequency of the publications – Increase range of products to support water management / allocation

32. 32 7. Future requirements Data requirements –Volume data for environment, distribution & production –Monetary data for environment, distribution & production –Water quality

33. 33 7. Future requirements Line ministries data through SASQAF –Process to making EEA document official statistics –DoE is already following process –DEA is looking at the process

34. 34 THANK YOU Robert Parry robertp@statssa.gov.za