Eurostat Environmental accounts - the European perspective Pedro Díaz Muñoz Eurostat Director of sectoral and regional statistics The Accounts of Society - Luxembourg, 12 ‐ 13 June 2014

2 Overview Purpose of environmental accounting Europe as a world leader – where we are The international context (System of environmental-economic accounting) Next steps in Europe (European Strategy for Environmental Accounts ) Final remarks

Environmental accounting - what and what for? Presents environmental information in a way that is compatible with national accounts using the same concepts and classifications (example: not territory but residence principle which fits to GDP) Integrates existing data into a coherent framework Basic accounting frameworks are supply-use tables (=what goes in comes out) and balance sheets (=opening stock plus changes gives closing stock) applied to environmental issues Allows analysis and modelling of environmental effects of economic activities and of policy measures Main areas: Physical flow accounts (air emission, energy…) Monetary environmental accounts (taxes, outlays…) Asset accounts (physical and monetary) Research in ecosystem accounting 3

Europe a world leader in environmental accounting  Pilot work with Member States since 1990s  Handbooks and voluntary data collections  European Strategy for Environmental Accounts  Legal acts:  Regulation (EU) No 691/2011 on European environmental economic accounts - 3 modules with data transmission obligatory since 2013: Air emissions (14 pollutants x NACE A*64 + households) Environmental taxes (4 types x NACE A*64 + households) Material flow accounts (some 50 categories -> Direct Material Consumption indicator to measure resource productivity) Regulation No 534/2014 amending 691/2011 adds 3 new modules with data transmission obligatory from 2017: Environmental protection expenditure account Environmental goods and services account Physical energy flow accounts 4

Accounts integration Physical accounts - Air emissions accounts - Material flow accounts - Energy flow accounts - Water accounts - Land accounts Monetary flow accounts - Environmental expenditure accounts - Environmental taxes - Environmental goods and services. National accounts - Supply, Use and Input-Output Tables (SUIOTs). Integration environmentally extended input-output data framework modelling various indicators, amongst which: Europe‘s “footprints“ 5

Residence principle (used in the national accounts) versus territory principle (differences can be big for some countries) 6

Example: industry profiles (shares of different industries in main characteristics, EU 27, 2010) 7

Production: industries Consumption: households Capital formation: investments Production: industries Consumption: households Capital formation: investments products imports exports CO2CO2 EU economy Rest of the World Global Perspective CO2CO2 8

Example: IO modelling with air emission accounts : carbon footprints 2009 t/cap 8.0 t/cap 7.9 t/cap 9.4 t/cap EU-27 domestic production 9

Example: Environmental tax revenue by type, EU-28, 2002 – 2012 (million EUR and % TSC) 10

Example: Environmental taxes in % of TSC and GDP, 2012 *Data for Hungary are preliminary 11

Cepa 1: air and climate protection Cepa 2: wastewater management Cepa 3: waste management Cepa 4-9: other environmental protection CreMA 10: water (incl. water supply) CreMA 13: energy from renew. sources + heat/energy savings

Example: Resource productivity 13

Eurostat 14 Information pyramid layers: Data Accounts Indicators

Overview of RE indicators from official statistics STATISTICS and ACCOUNTS  Land cover and land use statistics (and accounts)  Energy statistics (and accounts)  Waste statistics and other waste legislation (Waste Data centre)  Chemicals  Water statistics (and accounts)  Forestry statistics (and accounts)  Environmental accounts  EE SUIOT Some INDICATORS Land use indicators Protected areas Energy efficiency CO2 early estimates Renewable energy Waste generation (activity/waste category) Waste Treatment (Recycling, incineration…) Municipal Waste generation and treatment Hazardous waste … Production harmful / toxic chemicals Exploitation of water resources Wastewater treatment Forest surface Resource productivity Domestic material consumption (DMC) Environmental taxes / protection expenditure indicators GHG emissions and air pollution Carbon footprint / RMC 15

International context UN Statistical Commission (UNSC) in 2012 adopts the System of Environmental- Economic Accounting– Central Framework (SEEA-CF) as an international statistical standard. UNSC in 2013 adopts an implementation strategy for SEEA-CF which proposes a flexible and modular approach. In the EU, SEEA-CF is implemented through the European Strategy for Environmental Accounting (ESEA) UNSC in 2013 also welcomed the SEEA - Experimental Ecosystem Accounting as a first step towards developing a statistical framework for ecosystem accounting, and encouraged its use by international and regional agencies and countries wishing to experiment in this new area of statistics 16

Next steps – the new European Strategy for Environmental Accounts The 3 rd 5-year strategy after ESEA 2003 and 2008 – adopted by ESSC on 15 May Main elements: Further improve quality of 1 st set of modules (air emissions, environmental taxes, material flows) Promote uses of available data (e.g. footprints) Faster publication & early estimates for EU aggregates Implement 2 nd set of modules (EPE, EGSS, PEFA) Invest in statistical infrastructure (classifications, cooperation with other statistical areas…) Develop methods/test new modules (water, forests, environmental subsidies, resource management) (Assist EEA on ecosystem accounting) (Implement climate-change related statistics) 17

Tools in the EU Regulation: an obligation Monitoring compliance (blame and fame) Supplementary voluntary data collections Task forces and Working groups Handbooks and compilation guides Training material and training courses Financing implementation in EU (grants) 18

19 Example: Handbooks and compilation guides

June Final remarks Global aspects of environment Global consequences of pressures Global consequences of economic options Importance of standards Comparability/ Sharing knowledge Analytical capacity Building indicators Linking economy and environment Feasible Tested in many countries Available methodologies, training, expertise… Advocacy material Country benchmarking Available basic data Funding opportunities

21 Thank you for your attention!