1. Classification of physical flows: Part II Statistics Netherlands Roel Delahaye and Sjoerd Schenau

2. Content Introduction Main principles CPC Three subsystems Industrial branches Overlap between subsystems

3. Three subsystems Energy (Joules) Water (m3) MFA (Kg)

4. Introduction: One consistent classification Compatibility between subsystems Energy (Joules) Materials (Kg) Water (m3) Compatible National accounts and physical accounts Compatible industrial branches Overlap consistently classified

5. Usefulness CPC Waste accounts: Not included are manure, discarded equipment, mineral wastes etc. No distinction between hazardous and non- hazardous waste. Energy accounts: Not specified as energy carrier are biomass (except fuel wood), solid waste and gas like biogas. Sources electricity (solar, wind, coal etc.) not specified. CPC seems not sufficient. More discussion will follow later this session

6. Classification subsystems (I) MFA: Build up from different data sources. Therefore double counting may occur. - waste products my appear in NA data or international trade data. - Dissipative losses may appear in the air, water and waste accounts.

7. Classification of subsystems (II) Waste accounts: Use the European Waste Statistic Regulation. Other residual accounts: Use the classification presented in annex 4 of the SEEA. Discussion on detailed classification sub- systems will follow later.

8. Classification industrial branches Recommendation: Compatible industrial branch classifications between subsystems. Recommendation: ISIC industrial classification on a 2-digit division level for manufacturers and a 1-digit section level for all other industrial branches is sufficient or is more detailed required ? (see for example paper on SEEA-MFA)

9. Overlap subsystems (I) Are the following issues required to satisfy compatible classification of the three subsystems and the National accounts: Materials - Energy: Materials in the MFA should be classified energetic or non energetic. Materials - Energy: Classifications in the energy accounts should match the level in the MFA

10. Overlap subsystems (II) Energy - Water: Electricity generated by hydropower should be classified. Materials – National accounts: in MFA a distinction between waste products and residuals must be made. Are there issues regarding the overlap between the three subsystems (materials, energy and water) and the National accounts that have not been addressed here?

11. Questions for the London Group 1.Do you agree that Compatible industrial branch classifications between subsystems is required for all three subsystems ? 2. Is ISIC industrial classification on a 2-digit division level for manufacturers and a 1- digit section level for all other industrial branches sufficient ?

12. Questions for the London Group 3. Do you agree with a classification of waste according to the classification of the European Waste Statistic Regulation ? 4. Do you agree with the residual classification (apart from solid waste) as presented in the SEEA 2003 ?

13. Questions for the London Group 5. Do you agree that materials in de MFA used for generating energy should be classified to its purpose of use ? 6. Do you agree that electricity generated by hydropower should be classified? 7. Do you agree that a distinction between waste products and waste residuals in the MFA should be made?