Task Force on Climate Change related Statistics Geneva, 19-20 November 2012

1. Improving official statistics in EU for the purposes of emission inventories and climate analysisJúlio Cabeça, Eurostat Task Force on Climate Change related Statistics Geneva, 19-20 November 2012

2. Contents • Eurostat & ESS: role & mission • The inventory process at EU level • The role of Eurostat (data provider) in the inventory process • Eurostat as user of inventory data • Improving synergies Improving official statistics

3. Eurostat • Statistical authority of the Union • Its mission is to provide the European Union with a high-quality statistical information service • It shall develop, produce and disseminate European statistics in accordance with the statistical principles of: • Professional independence • Impartiality • Objectivity • Reliability • Statistical confidentiality • Cost-effectiveness Improving official statistics

4. The European Statistical System • Partnership between • the Community statistical authority, which is the Commission (Eurostat), • and the national statistical institutes (NSIs) • and other national authorities responsible in each Member State for the development, production and dissemination of European statistics Improving official statistics

5. Structure of Eurostat • 7 Directorates: • A: Cooperation in the European Statistical System; international cooperation; resources • B: Corporate statistical and IT services • C: National accounts, prices and key Indicators • D: Government finance statistics (GFS) • E: Sectoral and regional statistics • E2: Environmental Accounts and Climate Change • E3: Environment and Forestry • F: Social statistics • G: Global business statistics Improving official statistics

6. Improving official statistics

7. The EU GHG inventory system UNFCCC Improve quality DG CLIMA Harmonise Eurostat EEA Evaluate JRC MS1 MS2 MS3 … WG1 Improving official statistics

8. The EU GHG inventory system UNFCCC Improve quality DG CLIMA Harmonise Eurostat EEA Evaluate JRC MS1 MS2 MS3 … WG1 Improving official statistics

9. Reference approach (Tier 1) • Top-down approach, straightforward method • Uses country’s energy supply data (combustion of mainly fossil fuels): • Estimates CO2 emissions from based on national energy balance (own production coal, oil, gas + imports – exports) by fuel type without information on activities • Easy/quickly after basic energy balance sheet is available • Tool for cross-checking /comparing emission estimates of CO2 with the sectoral approach (QA/QC) • Rough idea of consumption: assumption that everything put on the market is also consumed i.e. combusted • Part of the oil and oil products is not combusted but used for the production of plastic products etc. Improving official statistics

10. Reference approach (Tier 1) • Reference approach: • Monthly statistical data  reference approach (on a monthly basis Eurostat only receives supply side data) • Sectoral approach (Tier 1): • Data provided by the consumers (industry, households, etc) • If good quality data, better and more realistic results • More data demanding and more difficult to implement • Annual statistics can be used for both approaches as they contain supply side data and consumption data from final consumers • Tier 2/Tier 3 approach: detailed technology-based method Improving official statistics

11. Early CO2 emission estimates • Project "Production of early CO2 emission estimates from energy statistics" • Calculation of early CO2 emission estimates (4 to 5 months after the end of the reference year) using monthly cumulated energy data • Evaluation of a trend method to estimate early CO2 emissions • Project extended Improving official statistics

12. Analysis of GHG Emission Trends • DG CLIMA's project (JRC): • Objective: development of a method to systematically and quantitatively analyse the influence of the main emission drivers on emissions trends • Econometric approach • All GHG emissions excluding LULUCF, for EU27 & MS • Sectoral detail: • all sources (except LULUCF); • sources covered by the EU ETS) & other sources if possible • individual sectors (e.g. transport, power, buildings, manufacturing industry, chemical industry, agriculture…) • Problem: (short) length of the time series Improving official statistics

13. Industrial processes sector • Reference approach for the industrial processes sector: • Study if PRODCOM database may serve as an alternative / complementary information source which would enforce the quality control and would provide a quality assured database • Explore if PRODCOM data can be used for gap-filling the EC inventory where no country estimate is available for a particular source category • Verification tool of the reported country data for QA/QC purposes. • Problems: • Confidential data • Sales vs. production Improving official statistics

14. The EU GHG inventory system UNFCCC Improve quality DG CLIMA Eurostat Harmonise EEA Evaluate JRC MS1 MS2 MS3 … WG1 Improving official statistics

15. Eurostat as user of inventory data UNFCCC DG CLIMA Eurostat EEA JRC MS1 MS2 MS3 … Improving official statistics

16. Eurostat as user of inventory data UNFCCC DG CLIMA Eurostat EEA JRC MS1 MS2 MS3 … Improving official statistics

17. Eurostat as user of inventory data Economy SEEA UNFCCC National Accounts Environmental Accounts DG CLIMA Eurostat JRC EEA MS1 MS2 … ONS1 ONS2 … Improving official statistics

18. Air Emissions Accounts • Reporting tables: • Air emissions by industry (NACE Rev. 2 – A*64): • … Agriculture • … • … • … Services • … • Household air emissions: • Transport • Heating/cooling • Other • Bridging items Improving official statistics

19. Air emissions accounts • Bridging items: Total air emission accounts (industry + households) Less national residents abroad – National fishing vessels operating abroad – Land transport – Water transport – Air transport Plus non-residents on the territory + Land transport + Water transport + Air transport (+ or –) Other adjustments and statistical discrepancies = Total emissions (pollutant X) reported to UNFCCC/CLRTAP Need to improve data on international transport (inventories and accounts) Improving official statistics

20. Residence vs. territorial principle Improving official statistics

21. Air Emissions Accounts • Regulation No. 691/2011 • Time series: • 1995-2007: NACE Rev. 1.1 • 2008 onwards: NACE Rev. 2 • Connected with National Accounts (Supply and Use, Input-Output Tables) • Modelling to obtain consumption approach: emissions embedded in imported goods consumed in EU • Other environmental extensions to SUIOT • Change from NACE Rev. 1.1 to NACE Rev. 2: • Break of times series • Decrease in detail of economic activities relevant to environment (information lost) Improving official statistics

22. Other work of Eurostat • Other modules in Reg. 691/2011: • Environmental taxes (annex 1) • Material Flow Accounts (annex 3) • To include in the future: • Environmental protection expenditure • CEPA1: Protection of ambient air and climate (mitigation) • Environmental Goods and Services • Energy accounts • … Improving official statistics

23. Environmentally-extended SUIO • Ee-SUIOT framework incorporates DPSIR model at different stages: • Economic activity (e.g. output, GVA, employment) • Data on environmental pressures (GHG, other air pollutants) • Indicators • Responses (e.g. mitigation, adaptation, environmental taxes, changes of consumption patterns) • Incorporate environment into the macro-economic and sustainable consumption and production policies Improving official statistics

24. Improving synergies Economy UNFCCC National Accounts Environmental Accounts DG CLIMA Eurostat JRC EEA Env Ag Env Ag EnvAg ONS ONS ONS Improving official statistics

25. Improving synergies World level Classifications Standards UNFCCC UNSD DG CLIMA Data exchange Harmonisation Eurostat EEA Data sources Data exchange Env Ag EnvAg ONS ONS National level Improving official statistics

26. Improving synergies World level Classifications Standards UNFCCC UNSD Policy question Data needs DG CLIMA Data exchange Harmonisation Eurostat EEA ONS Env Ag Data sources Data exchange Env Ag ONS National level Improving official statistics

27. Summary • EU GHG inventories (mostly) under responsibility of DG CLIMA, EEA and national Environmental Agencies • Eurostat contributes with data (e.g. reference approach) • Eurostat publishes data on Air Emissions Accounts (which address other policy questions and complement inventories) • Environmental accounts link environmental pressures with economic activity and to responses • Need to intensify links between two networks: • Statistical system • Environmental agencies • Better align classifications of UNFCCC and  ISIC (NACE) • Important to understand what are the policy questions and data needs Improving official statistics

28. Thank you… julio.cabeca@ec.europa.eu http://epp.eurostat.ec.europa.eu/portal/page/portal/environmental_accounts/introduction Improving official statistics