© Karl Schoer 2008

Issue list for the compilation of the SEEA-MFA manualOutcome of the London Group meeting in Rome

Eurostat MFA taskforce meeting Luxemburg 6-7 March 2008

Karl Schoer

E-mail: karl@schoer.net

© Karl Schoer 2008

Physical flow accounts versus material flow accounts

- The term physical flow accounts (PFA) will be is used for denoting the flows of matter and energy in physical units between the economy and the environment and within the economy. The system of physical flow accounts consists of three partly overlapping subsystems which describe the flows in different physical units, which are tons, joules and cubic metres.

- The material flows accounts (MFA): all flows of materials including energy and water measured in weight units.

- The energy flow accounts: energy flows in calorific values, also including non-material energy carriers energy carriers like electricity.

- The water flow accounts: water flows in cubic metres.

- The SEEA type MFA will be the subject of the SEEA-MFA manual. Other are other environment relevant non-monetary service flows should also to be addressed in the SEEA. Other material flows accounts which do not follow the general conventions of the SEEA satellite system should be labelled as Non-SEEA material flow accounts.

Issue can be submitted to UNCEEA for decision

© Karl Schoer 2008

Socio economic system versus economy

In the LG meeting it was voted whether to introduce the term “economic system” or to keep the SNA-term “economy” for the SEEA. The voting showed a narrow result in favour of shifting to the term “economic system” which might not considered to be sufficient for changing the current practice.

Final decision should be taken by UNCEEA

© Karl Schoer 2008

EW-MFA: Residence versus territory concept

The LG recommended to use the residence concept of SNA/SEEA also for the EW-MFA.

In order to provide a link to the national and international reporting systems (energy balances, green house gas emissions UNFCCC), which follow the territory concept, bridge tables from the residence to the territory concept should be provided for energy and air emissions.

Issue can be submitted to UNCEEA for decision

© Karl Schoer 2008

Cultivated crops and trees

The LG recommended that the environmental inputs to the economy for cultivation of crops and trees should in principle be measured by the “modified harvest approach” (harvested biomass plus change in inventories) ”. That will imply to regard cultivated crops and trees as a natural resource or as an approximation for the amount of ecosystem inputs used.

As this new convention represents a major and principal change for the SEEA-MFA it was suggested to take the decision of adopting it at a preliminary basis and to review the consequences for the PSUT and the PIOT again at the next LG meeting and to improve the presentation of the modified harvest approach in a way that both the environmental accountants and the MFA experts find their approach recognized.

Issue should be referred back to the next LG meeting

© Karl Schoer 2008

Waste flows

The LG recommended to regard the disposal of waste to controlled landfills as a flow within the economy and not as a flow to the environment for the general SEEA-MFA as well as for the EW-MFA.

The item “waste in controlled landfills” should be regarded as a kind of stock separate from other forms of accumulation.

In addition it was recommended to add the principal waste flows (waste generation, treatment and recycling) as memorandum item to the EW-MFA.

Issue can be submitted to UNCEEA for decision

© Karl Schoer 2008

Disaggregation of material flows related to consumption of private households

The LG recommended to disaggregate the material flows related to consumption of private households into current consumption and addition to stocks of consumer durables

Issue can be submitted to UNCEEA for decision

© Karl Schoer 2008

General structure of the manual

The LG recommendation:

- The close relationship of SNA and SEEA-MFA should be taken as a starting point. -The SEEA-MFA should present a general conceptual frame which is based on comprehensive standard physical supply and use tables (PSUT) and general environment related standard classifications

- a number of specific sub-accounts (EW-MFA and accounts for selected materials or groups of materials) -and analytical applications.

To be elaborated by UN consultant