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Preparation of Economy Wide - Material Flows Accounts using International Data. Jim West International Study Tour– Black Mountain – September 2013 CSIRO ECOSYSTEM SCIENCES Disclaimer and request Out of material and energy flows accounting, and emissions accounting, the focus here will be on materials flows because: • Energy flows largely are already effectively accounted for in the IEA or EIA databases (or can be trivially derived from them). • Emissions data has come directly from that available directly from the World Bank’s WDI database In contrast, the work we’ve done on material flows has been quite major, and having individual countries become involved would improve it still further. PLEASE FEEL FREE TO ASK QUESTIONS AS WE GO 2 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West What is Economy Wide – Material Flows Accounting (EWMFA) ? EW-MFA deal with material inputs and outputs from a national economy, using physical rather than monetary terms. Covers domestic extraction of materials from the natural environment (excluding water and air), and international trade of materials. Only flows crossing the system boundary between the environment and the economy are counted. “Hidden” flows are not counted. The key final metric is Domestic Material Consumption (DMC), arrived at via Domestic Extraction (DE) , and Physical Trade Balance (PTB). PTB = Imports – Exports DMC = DE + PTB 3 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West How do we compile EW-MFA accounts? Refer to the Eurostat EW-MFA Compilation Guide (2012) for how these statistics should be compiled at national level. This is the “Standard”, (that said, some departures may be forced, or warranted for other reasons) 4 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West What use is EW-MFA ? The “Guide” says that it is “to describe the interaction of the domestic economy with the natural environment and the rest of the world economy (ROW) in terms of flows of materials. Determine how much “stuff” needs to be extracted from the environment to support a certain material standard of living. Determine how much waste needs to be sunk back into the environment (even infrastructure eventually ends up as waste). ** Provide basic information necessary to determine Resource Efficiency** Improved RE = Lower Environmental Impacts (ceteris paribus) 5 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Examples 1: National level DMC trajectories in the Asia-Pacific region 6 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Individual trajectories in Latin America do not fit the classic pattern of socio-metabolic transitions well 7 | Contrasting socio-metabolic transitions for two world regions - ISIE Ulsan 2013 | Jim West, Heinz Schandl Examples 2: World regional level trajectories for DMC, material intensity, and GDP/capita 8 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West How suited to purpose is DMC? Depends on commodity. For allocating responsibility for resources “use” and resource efficiency: Minerals : Poor - Reasonable. Less biased against resource producers / exporters than TMI (which includes hidden flows), or DE alone, but material footprint far superior. Fossil Fuels : Good (though misses embodied energy) For determining where environmental loads accrue efficiency: Good. Captures where much of the material and energy intensive processing takes place. Better than MF, but less comprehensive than TMI. 9 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West DMC Vs. Material Footprint. From: Wiedmann, Schandl, Lenzen, Moran, Suh, West, and Kanemoto. (2013). “The material footprint of nations”. Proceedings of the National Academy of Sciences. 10 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Using international data sets for EW-MFA “The Guide” is aimed at best practice for compilation of EW-MFA accounts by individual countries, preferably by national statistical agencies. CSIRO EW-MFA databases needed to cover many countries, had to rely on comprehensive international databases. Inevitable that some quality lost due to use of generalized international coefficients rather than nation specific ones. However (we believe) that some our modelling used is superior to the default options suggested in the guide (notably for biomass and metal ores). Also much less biased towards industrialized nations. Note: beware some misleading wording in “The Guide” e.g. misstatement of ore grades. 11 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Key material categories. Ultimately, four materials categories were defined, with further detail within these in 11 sub-categories. Similar to “The Guide” top level divisions, but not identical Category Biomass Sub-category Crops Crop residues Grazed biomass Fossil fuels Wood Coal Petroleum Natural gas Metal ores and industrial minerals Construction minerals Ferrous ores Non-ferrous ores Industrial minerals Construction minerals 12 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Compilation level often more detailed. Initial compilation of DE done into 35 categories, conform to The Guide’s categories at 2 to 4 digit level. Country Australia Australia Australia Australia .. Australia Australia Australia Australia Australia Australia Australia .. Australia .. Australia EWMFACat A.1.1.1 A.1.1.10 A.1.1.2 A.1.1.3 .. A.1.2.1 A.1.2.2.2 A.1.3.1 A.1.3.2 A.2.1 A.2.2.1 A.2.2.2 .. A.3.1.4 .. A.4.2.2 EWMFAName Cereals Other crops Roots and tubers Sugar crops .. Crop residues (used) Grazed biomass Timber (Industrial roundwood Wood fuel and other extraction Iron Ores Copper ores - gross ore Nickel ores - gross ore .. Chemical and fertilizer minerals .. Natural gas 1970 1971 12904533 14840092 20979 20536 763149 775769 17644800 19390500 .. .. .. 22236442 24991770 57746580 61653104 5989240 6295400 1796720 1798338 51186080 62096904 16037299 18289790 538510.5 848992.9 .. .. .. 174269.8 241905.1 .. .. .. 1029096 1532984 13 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West 1972 10781927 17861 824603 18928300 21413062 70415892 6044480 1799840 64398144 19558434 1138581 264879.8 2208486 Main raw data sources for DE estimation. Colour indicates degree of confidence in estimates (green high, red low) Sub-category Main Raw Data source Post Processing Crops FAO Crop Production Statistics Minimal Crop residues FAO Crop Production Statistics Moderate modelling Grazed biomass FAO Food balance sheets Extensive modelling, large assumptions Wood FAO Forestry Minor modelling Coal IEA (and EIA) Minimal Petroleum IEA (and EIA) Minimal Natural gas IEA (and EIA) Minimal (Energy to weight conversion) Ferrous ores USGS, UN Industrial Commodities Minimal, moderate assumptions Non-ferrous ores USGS, UN Industrial Commodities Simple modelling, large assumptions Industrial minerals USGS, UN Industrial Commodities Simple modelling, large assumptions Construction minerals USGS, UN Industrial Commodities Moderate modelling, large assumptions 14 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Main raw data sources for Trade estimation. Colour indicates degree of confidence in estimates (green high, red low) Sub-category Main Raw Data source Post Processing Crops FAO Trade Statistics Minimal Crop residues FAO Trade Statistics , UN Comtrade Minimal Grazed biomass Wood Coal Petroleum Natural gas Ferrous ores FAO Trade Statistics , UN Comtrade FAO Forestry IEA (and EIA) IEA (and EIA) IEA (and EIA) UN Comtrade Minimal Minimal Minimal Minimal Minimal (Energy to weight conversion) Minimal Non-ferrous ores UN Comtrade Minimal Industrial minerals UN Comtrade Minimal Construction minerals UN Comtrade Minimal 15 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Raw data is only a very rough starting point for some categories of material - 1 EW-MFA is interested in determining the quantity of raw material as extracted from the environment Fossil fuel statistics are excellent, and most mass is retained in traded products. Basic crop data is good and generally in the units / on the basis we require. Forestry data also reasonably good, roundwood basis is what we want, and weight conversions not too difficult. In Contrast: 16 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Raw data is only a very rough starting point for some categories of material - 2 Statistics on Metals usually on contained metal or concentrates basis. We want ore. Statistics on crop residues need to be calculated from crops produced. We are only interested in that portion that enters economy. Statistics here are poor. Construction materials are rarely well recorded. The best we can do is get the figure for cement (which is recorded), and apply factors to that. Grazed biomass is almost never recorded. The figure is calculated from complex modelling based on other figures, some of which are poorly determined. 17 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West DMC and the problem of double counting. Double counting can be a major problem in determining DMC. A compromise between missing major flow volumes and double counting was reached. We used different scopes for DE and Trade. For DE, only primary materials as extracted from the environment were counted, as double counting of mass occurs when we include processed goods. e.g. Crude oil extracted + gasoline refined = double counting For Trade, products which had undergone considerable processing were included in volumes e.g. exports of roundwood + wood chips + paper are independent. Elaborately transformed, multi-material items are excluded (of necessity). 18 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Example 1 - Grazed biomass - complex modelling, many assumptions. No nation measures how much grass its herds eat. HOWEVER: Production of animal products is generally well recorded - FAO. Portion of crops and fishmeal going to animal feed is recorded (to some degree) – FAO. Studies have been undertaken on the feed energy required to produce different animal products (most notably Wirsenius 2000). (Animal products x required feed energy/kg) – feed energy supplied from crops = “Feed Gap” Missing energy required for ruminant products must (we hope) come from grass. 19 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Grazed biomass (cont.) - Hierarchically model different animals’ claims on feed crops. Country Afghanistan Afghanistan Afghanistan Afghanistan Afghanistan .. Albania Albania Albania Item Cattle meat Cow milk, whole, fresh Eggs Primary + (Total) Goat meat Goat milk, whole, fresh .. .. Cattle meat Cow milk, whole, fresh Eggs Primary + (Total) MJ/kg 499 13.82 53 998 27.64 160 9.95 42 Crop NEmCattle NEgCattle TotNExCattle DEPig MEPig MEChicken wheat_grains 9.35 6.49 15.85 16.3 15.6 14.7 rice_grains 9.35 6.49 15.85 16.3 15.6 14.7 maize_grains 9.35 6.49 15.85 16.4 15.7 15 .. .. .. .. .. .. .. sorghum_grains 8.59 5.82 14.42 15.5 14.9 15 cassava_tubers 8.16 5.43 13.6 14.5 13.9 0 20 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Example 2 – Metal ores - simple modelling, huge assumptions. Statistics on Metals usually on contained metal or concentrates basis. We want ore tonnages. Conceptually very simple, Ore = contained metal / grade Unfortunately: • Ore grades can vary enormously between deposits and countries. • poly-metallic deposits –> coupled production -> double counting*. • Trade data does not distinguish well between metal ores, concentrates. *In a sense, there is no fully satisfactory answer to the coupled production problem. The Guide’s allocation by value is perhaps as good as any. 21 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West What can be done by individual countries to improve EWMFA. • Compile key mining statistics by commodity, especially tonnes and grade of ore (mine by mine). • Better record production of construction aggregates. • Report mineral imports / exports in more disaggregated form i.e. separate ores from concentrates, and attach a weighted average metal content to each. • Determine what non-grazed feeds are actually received by individual classes of animal. 22 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West Links and further reading. CSIRO and UNEP REEO reports and online material flows databases : http://www.csiro.au/Outcomes/Climate/Adapting/Resource-Efficiency-Asia-Pacific.aspx www.csiro.au/AsiaPacificResourceFlows, www.csiro.au/LatinAmericaCaribbeanResourceFlows (see also the technical annexes linked from these pages) “The Guide”: just Google “Eurostat EW-MFA Compilation Guide” to get latest. Context setting: Krausmann, F., S. Gingrich, N. Eisenmenger, K.-H. Erb, H. Haberl, and M. Fischer-Kowalski. 2009. Growth in global materials use, GDP and population during the 20th century. Ecological Economics 68: 2696 - 2705. DMC and Trade issues: Schandl, H. and J. West. 2012. Material Flows and Material Productivity in China, Australia, and Japan. Journal of Industrial Ecology 16(3): 352-364. Material Footprint: Wiedmann, T. O., H. Schandl, M. Lenzen, D. Moran, S. Suh, J. West, and K. Kanemoto. 2013. The material footprint of nations. Proceedings of the National Academy of Sciences. 23 | Preparation of Economy Wide - Material Flows Accounts using International Data. – Black Mountain – September 2013 | Jim West