System of Environmental-Economic Accounting for Energy (SEEA-Energy) International Workshop on Energy Statistics 27-30 September 2011, Baku, Azerbaijan United Nations Statistics Division Environmental-Economic Accounts Section

Outline of session Status of SEEA-Energy Adoption of SEEA-Energy SEEA-Energy and IRES SEEA-Energy and ESCM SEEA-Energy and SEEA Comparing: Accounts and balances Possible applications of SEEA-Energy

SEEA-Energy and UNCEEA United Nations Committee of Experts on Environmental Economic Accounting (UNCEEA) is a strategic body established by the UN Statistical Commission to: Provide strategic vision, direction and coordination to mainstream environmental-economic accounting and supporting statistics in national, regional and international statistical systems; Develop normative international statistical standards and supporting methodological documents on environmental-economic accounting and supporting statistics The London Group on Environmental Accounting works under the auspices of the UNCEEA, the Oslo Group coordinates its activities with the UNCEEA The SEEA-Energy is being developed by UNSD under the auspices of the UNCEEA

SEEA-Energy and UNCEEA, continued… The first meeting of UNCEEA in 2006 agreed Energy Accounts should feature prominently in the SEEA The 2nd meeting of the UNCEEA provided general consensus for producing a document on Energy Accounts UNCEEA considered the standardization of energy accounts an important input to the discussion on climate change requested that work on Energy Accounts be coordinated with work on Energy balances and statistics

Status of SEEA-Energy Draft chapters 1 to 7, Annexes and Glossary of SEEA-Energy are available: http://unstats.un.org/unsd/envaccounting/seeae/chapterList.asp Drafted by consultant Ole Gravgård Pedersen (with financial support of UNSD and Federal Statistical Office of Germany) SEEA-Energy was drafted early in 2011 i.e. somewhat in advance of the central framework of the SEEA Therefore, current efforts to align SEEA-Energy with the central framework of the SEEA and with IRES…

Towards finalization of SEEA-Energy Expert Group Meeting (EGM) on SEEA-Energy in New York 5-7 October 2011 Will discuss response to a number of outstanding issues To allow drafting of SEEA-Energy version for global consultation phase

Adopting SEEA-Energy After the EGM on SEEA-Energy in New York… Update of draft SEEA-Energy chapters to reflect EGM comments. Commence Global Consultation of SEEA-Energy (Dec 2011 to Jan 2012) Update of SEEA-Energy chapters to reflect Global Consultation Final draft of SEEA-Energy will be submitted to the UNCEEA in 2012 It is expected that SEEA-Energy will adopted by the UNSC as a statistical standard in 2012

Towards finalization of SEEA-Energy, continued.. EGM on SEEA-Energy in New York 5-7 October 2011, continued… Discussion of SEEA-Energy chapters at the EGM Chapter 1 Introduction Chapter 2 The SEEA-E Framework Chapter 3 Physical Asset Accounts Chapter 4 Monetary Asset Accounts Chapter 5 Physical Flow Accounts Chapter 6 Monetary and Hybrid Flow Accounts Chapter 7 Presentation and Use of Energy Accounts Annexes and Glossary

IRES and SEEA-Energy International Recommendations for Energy Statistics (IRES) adopted by the UN Statistical Commission in February 2011. SEEA-Energy chapters will be consistent to the extent possible and appropriate with IRES Ongoing cooperation with Oslo Group and the Inter-Secretariat Working Group on Energy Statistics

SEEA-Energy and ESCM Work has commenced on an Energy Statistics Compilers Manual (ESCM) ESCM is an integral part of the implementation of both SEEA-Energy and IRES It will provide practical compilation guidance

SEEA-Energy and ESCM, continued… Annotated outline of ESCM discussed at Oslo Group meeting in Canberra, May 2011 And September 2011 at London Group meeting in Stockholm London Group fully supported the ESCM work and suggested that discussion of SEEA-Energy appear more extensively throughout the ESCM (i.e. not just in ESCM ‘Chapter 6 – Compilation of Energy Accounts’)

ESCM Draft outline Conceptual framework Legal foundations and institutional arrangements Classification Data sources and data collection Compilation of energy balances Compilation of energy accounts Flow accounts – physical and monetary Assets accounts – physical and monetary Energy indicators and Greenhouse gas emissions Data quality and metadata Data dissemination

ESCM draft timeline Sept 2011- : Collection of country practices via the country practice template Will form the basis for the drafting of ESCM Will be stored in the UN knowledge base Start working groups and delegate responsibility for the writing of chapters in the ESCM: Late 2011- early 2012: Drafting of chapters October 2012: 7th OG meeting in Finland (and next LG meeting). Discuss and review draft text 2013: 8th OG meeting and LG meeting ESCM completed

SEEA-Energy Applications Energy Accounts, Energy Balances, Energy statistics Which one should I use? It depends on the type of analysis…

Energy Accounts, Energy Balances, Energy statistics… Based on energy statistics Organized around activity of producing and consuming units E.g .Transport = transport industry only Physical and monetary Flows and Stocks Residence principle National accounts Supply Use format Balances, statistics Based on energy statistics Based on energy sector technologies E.g. Transport = all industries’ use of transport Physical Flows and Stocks Territory principle Various formats

Energy Accounts, Energy Balances, Energy statistics… Energy accounts have advantages for: Comparing physical information with information on economic activities Presenting specific monetary information related to energy issues Linking energy information to economic instruments e.g. taxes, subsidies, permits

Energy Accounts, Energy Balances, Energy statistics… For example, energy balances and statistics can provide the basis for estimates of emissions related to energy If we want to manage the level of emissions, energy balances and statistics can provide an indication of how each energy source contributes to emissions But not the economic units who are responsible And not the economic unit who will be affected by schemes to manage emissions

Energy Accounts, Energy Balances, Energy statistics… Energy Accounts reveal information on who owns, who produces and who consumes So, for example, if an emission trading scheme is introduced… Energy Accounts could tell us who pays the cost of managing emissions (i.e. households, various industries); the resulting impact on levels of emissions generated by households and by various industries; and impact on incomes, taxes and so on…

Applications of SEEA-Energy SEEA-Energy devotes a chapter to guide users on its potential applications SEEA-Energy strength is to highlight interaction between economy and energy to better guide decision-making and policy-making

SEEA-Energy Applications, Analyses presented here generally focus on use of those features specific to energy accounts: Monetary information Information on industries Coherent comparison of physical and monetary data Use of input-output modeling Etc.

Examples of SEEA-Energy applications Following slides will discuss analyses in the following areas: Energy contribution to national income and wealth Developments in supply and use of energy Role of renewable energy Analyses of economic growth and energy use Energy use and emissions to air

Energy contribution to national income and wealth… In the following graph we see output of various energy producers over time Economic output may be growing or falling over time Producers’ output and income may be increasing, even as physical extraction of energy resources is falling (and vice versa)

Energy contribution to national income and wealth… E.g. Output from energy industries…

Energy contribution to national income and wealth continued… depletion-adjusted operating surplus equals operating surplus of extractors of energy resources and generators of energy less the value of depletion of natural energy resources Better informs the sustainability of this type of production

Energy contribution to national income and wealth continued… Other types of analyses: Energy and its relationship to energy taxes, government budgets and sustainable government revenue Foreign trade and the extent to which a country is reliant on energy exports and/or dependent on energy imports Direct contribution of energy assets to national wealth

Monitoring developments in Energy supply and use Overall supply and use of energy Physical use of energy by households and by industry And corresponding monetary use of energy by these units Proportion of household and business spending related to energy

Role of renewable energy Following graph shows contribution of renewable energy to total primary energy production For renewable energy production: price of output; intermediate costs, capital formation and so on can all be compared to corresponding figures for non-renewable energy

Role of renewable energy Black line = renewable share of primary energy

Analyses of economic growth and energy use Analysis of energy use in relation to economic growth and efficiencies of industries Important question of decoupling of economic growth and energy use i.e. is growth becoming more or less sustainable?

Analyses of economic growth and energy use, continued… Decomposing factors underlying changing energy use Shift to more/less efficient industries Shift to more/less efficient processes and technologies Shift in structure of final demand Example in following slide – growth in energy use is slower than growth in final demand Contributing factors shown…

Decomposing factors underlying energy use Figure 7.27The change in industries1) energy use and the factors behind the change - 6 4 2 8 1 ' 9 P e t a j o u l G r w h f i n d m T c g y s S I E 1)Excluding transportation services

Energy use and air emissions SEEA-Energy standard tables do not record air emissions arising from energy production and use However, SEEA-Energy is well-placed to support emissions-related analyses As a basis for estimating emissions… As a framework to evaluate schemes for managing energy-related emissions

THANK YOU! For additional information please contact the Environmental-Economic Accounts Section seea@un.org