1. MFA Training Workshop Eurostat / EEA / ETC-WMF Topic 5: Net Additions to Stock (NAS) and further developments of MFA MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Helmut Schütz

2. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Definition: Material stocks Eurostat Guide: Mainly man-made fixed assets as defined in SNA, such as infrastructures, buildings, vehicles and machinery, as well as inventories of finished products. Human bodies and livestock in principle also, but ignored in economy-wide MFA. Optional cases: controlled landfills and cultivated forests (with consequences on → outputs to the environment (DPO), respectively domestic extraction used). Recommendations in Guide: waste landfilled as part of DPO harvest of timber as material input (DEU)

3. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Definition: Net Additions to Stock (NAS) Matthews et al. 2000: The quantity (weight) of new construction materials and materials incorporated in new durable goods (gross additions) minus old materials removed from stock of buildings and durable goods. Eurostat Guide: Two approaches to derive NAS: As a residual from DMC less DPO ± Balancing items (indirect) → e.g. Matthews et al. 2000 (A, D, NL, J) As gross additions to stock minus outputs from stock (direct) → e.g. Matthews et al. 2000 (USA); Barbiero et al. 2003 (I)

4. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Indirect account: Net Additions to Stock (NAS) Uncertainties to consider: data inconsistencies (e.g. waste generation vs. waste disposal) material properties (especially water contents of fuels and biomass) risk of double counting (e.g. waste disposal including waste incinerated) missing data and uncertainties inherent in estimates of missing data (e.g. missing waste data, balancing items) => In general, direct account for NAS to be prefered. However, this requires additional accounting for the domestic production and use of materials not included in economy-wide MFA. References: Matthews et al. 2000 for USA; Barbiero et al. 2003 for Italy.

5. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Definition: Balancing items Eurostat Guide: Memorandum items for balancing required to ensure consistency of the full material balance. Only purpose is balancing. Not to be included in indicators derived from the accounts. Further development towards comprehensive balancing can be found e.g. in ISTAT –Barbiero et al. 2003, and in Thule Institute, Finland – Mäenpää et al. 2003a

6. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Indirect Account: Net Additions to Stock (NAS) Eurostat Guide: Input side: Memorandum items for balancing** Oxygen for combustion of fuel components (of C, H, S, N, etc.) Oxygen for respiration of humans and livestock Nitrogen for NOx emissions from combustion Air for other industrial processes (liquefied technical gases, polymerisation, etc.) **.......Memorandum items for balancing are not to be included when compiling indicators. Further items: Water content changes between inputs and outputs (e.g. Mäenpää et al. 2003a)

7. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Indirect Account: Net Additions to Stock (NAS) Eurostat Guide: Output side: Memorandum items for balancing** Water vapour from combustion (H 2 O) From water (H 2 O) contents of fuels From hydrogen (H) contents of fuels Water evaporation from products Water content of biomass Water content of other materials Respiration of humans and livestock CO 2 Water vapour (H 2 O). **....... Memorandum items for balancing are not to be included when compiling indicators.

8. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Direct Account: Net Additions to Stock (NAS) Eurostat Guide: Account 5b: NAS account (NAS directly compiled) TransportBuildingsMachineryOtherInventories*Total infrastructure durables + Additions (gross) - Discard and demolition waste** - Losses due to corrosion & abrasion => Net Additions to stock * excluding inventories of standing timber, **…other removals (e.g. exports of second-hand cars) are conceivable Recommended reference for application: Barbiero et al. 2003

9. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Data and information sources: Net Additions to Stock (NAS) Indirect account: Balancing items e.g. Matthews et al. 2000, Barbiero et al. 2003 Direct account: Domestic use of materials to stock (different from economy- wide MFA dataset), e.g. Matthews et al. 2000 for USA Outputs from stock (as part of DPO account) Recommended reference: Barbiero et al. 2003

10. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Links: Net Additions to Stock (NAS) NAS can be set into relation with the annual change of built-up area

11. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA Net Additions to Stock (NAS): further development Net Additions to Stock (NAS) requires in first place development of a common database for balancing items for material inputs and material outputs in case the indirect accounting path for NAS is chosen. In this context, the dual accounting procedure for NAS proposed in the Eurostat Guide has to be further developed in particular towards a practical guideline on how to perform the direct NAS accounting. Development of specific sub-balances, by macro-sectors and/or kind of materials (e.g. biomass, fuels, minerals) with consequences also for improvement of the accounts for DEU and UDE (reference: ISTAT – Barbiero et al. 2003). Balancing models for combustion and metabolisms of livestock and humans (references: Mäenpää et al. 2003; Mäenpää and Vanhala 2002)

12. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA MFA: Further developments Eurostat Guide as basic reference which, however, requires on the one hand further refinement/improvement in some parts as indicated below, and on the other hand further development towards a practical guide for those who wish to implement economy-wide MFA into their monitoring system for sustainable development indicators and natural resource management. Standard definitions and unambiguous boundaries for main accounting units (DEU versus UDE etc.) Standard definitions, classification systems, and accounting conventions for material categories making up the main accounting units.

13. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA MFA: Further developments Standardized statistical nomenclature of materials, as far as possible, also with regards to further analysis like via Input- Output techniques. Standard common database of coefficients of technical nature (e.g. conversion of physical units) and coefficients to estimate UDE, IF, Balancing items and any other material flow concerned. Development of plausibility checks, in particular for DEU of green biomass for feedstuff of livestocks of ruminants, and for DEU of construction minerals. Development of a practical guideline for economy-wide MFA and standard templates for accounting units like DEU of fossil fuels and minerals (e.g. ongoing work at IFF and WI).

14. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA MFA: Further applications Sector accounts: e.g. NAMEAs (Schütz et al. 2003a) and Physical Input-Output Tables (PIOT) (e.g. Denmark – Pedersen 1999); Finland – Mäenpää 2004; Germany – Statistisches Bundesamt – UGR 2001) Regional accounts etc. (regions, cities, companies, products) Land use accounts („real“ – e.g. Schütz et al. 2003a, and „Ecological footprint concept“ – Wackernagel) Environmentally weighted material flow accounts (van der Voet et al. 2003, 2004) Specific aspects like effects of globalization and trade on MFA of the economy (e.g. Schütz et al. 2003)

15. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA MFA: WI contacts Website: www.wupperinst.org, in particular:www.wupperinst.org Research group 3: Material Flows and Resource Management: http://www.wupperinst.org/Sites/Divisions/rg3.html http://www.wupperinst.org/Sites/Divisions/rg3.html Research group 4: Sustainable Production and Consumption: http://www.wupperinst.org/Sites/Divisions/rg4.html http://www.wupperinst.org/Sites/Divisions/rg4.html Emails: Stephan Moll: stephan.moll@wupperinst.org; smoll@t-online.destephan.moll@wupperinst.orgsmoll@t-online.de Helmut Schütz: helmut.schuetz@wupperinst.org; nc- schuethe6@netcologne.dehelmut.schuetz@wupperinst.orgnc- schuethe6@netcologne.de Michael Ritthoff: michael.ritthoff@wupperinst.org :MI-Analysismichael.ritthoff@wupperinst.org

16. MFA Training Workshop, Luxembourg, 14-15 June 2004Wuppertal InstitutHSC/2004/MFA