classification of physical flows -a proposal – issue 2 bram edens, alessandra alfieri odd...

Classification of physical flows Classification of physical flows -A proposal –-A proposal –

Issue 2Issue 2Bram Edens, Alessandra Alfieri Bram Edens, Alessandra Alfieri

Odd Andersen, Ralf Becker Odd Andersen, Ralf Becker UNSDUNSD

London Group Meeting London Group Meeting Canberra 27-30 April 2009Canberra 27-30 April 2009

IssuesIssues

• Definition of product, waste, residualDefinition of product, waste, residual

• Proposal for a reorganization of the Proposal for a reorganization of the structure of classification of physical flowsstructure of classification of physical flows

• Scope of waste accountsScope of waste accounts

Definition of products, Definition of products, by-products, waste, residualby-products, waste, residual

• 2008 SNA2008 SNAProductsProducts are goods and services that are the result are goods and services that are the result

of productionof productionBy-productsBy-products are products necessarily produced are products necessarily produced

with principal products (wheat and straw)with principal products (wheat and straw)Joint productsJoint products are products produced are products produced

simultaneously by a single activity (sugar and simultaneously by a single activity (sugar and molasses)molasses)

No definition of waste or residualNo definition of waste or residual

Definition of products, Definition of products, by-products and waste (Cont’ed)by-products and waste (Cont’ed)

• CPC ver.2CPC ver.2• In general follows SNA definitionIn general follows SNA definition• Covers everything that is transacted within the Covers everything that is transacted within the

economy (products and waste)economy (products and waste)• Principles of CPCPrinciples of CPC

• Industrial originIndustrial origin• Physical characteristic of productPhysical characteristic of product• Harmonization with HS (waste)Harmonization with HS (waste)

• Waste scattered in several CPC classesWaste scattered in several CPC classes• Value is not a criterionValue is not a criterion


• Waste Framework DirectiveWaste Framework Directive• Products Products materials created in a production processmaterials created in a production process• By-products By-products materials deliberately produced in a materials deliberately produced in a

production process but may or may not be waste. production process but may or may not be waste. • For a material to be a by-product 3 tests have to For a material to be a by-product 3 tests have to

hold simultaneously:hold simultaneously:• Further use is a certaintyFurther use is a certainty• Material can be reused without further processingMaterial can be reused without further processing• Part of a continuous process of productionPart of a continuous process of production


• Waste Framework DirectiveWaste Framework Directive• Waste Waste Material for which the generator has no Material for which the generator has no

further use for own purpose of production, further use for own purpose of production, transformation or consumption and which he transformation or consumption and which he discards or intends to or is required to discarddiscards or intends to or is required to discard

• Can be generated at any stage of production or Can be generated at any stage of production or consumptionconsumption

• Commercial value and economic reutilization Commercial value and economic reutilization are irrelevantare irrelevant


• SEEA-2003SEEA-2003• Products Products are goods and services produced within are goods and services produced within

the economic sphere and used within it. Include the economic sphere and used within it. Include also residuals that have positive value to the also residuals that have positive value to the generatorgenerator

• Residuals Residuals are not uniquely defined are not uniquely defined • Incidental and undesired outputs from the Incidental and undesired outputs from the

economy that have zero value to the generatoreconomy that have zero value to the generator• Flows from the economy to the environmentFlows from the economy to the environment• Include dissipative use of productsInclude dissipative use of products

• Waste Waste is sub-item of residual – solid waste that is sub-item of residual – solid waste that stays within the economystays within the economy

CommentComment

• Definition of products is in general consistent Definition of products is in general consistent across frameworksacross frameworks

• Definition of residuals and waste is not:Definition of residuals and waste is not:• SEEA-2003 definition is linked to valueSEEA-2003 definition is linked to value• WFD definition is linked to the notion of WFD definition is linked to the notion of

“discard” “discard” • Material discarded can be:Material discarded can be:

• Delivered to another industry for further use Delivered to another industry for further use without processingwithout processing

• Discharged to a landfillDischarged to a landfill• (Discharged to the environment)(Discharged to the environment)

Proposals on definitionsProposals on definitions

• Definition of products should be fully Definition of products should be fully consistent with that of the SNAconsistent with that of the SNA

• Waste – use definition of WFDWaste – use definition of WFD

• Explain the notion of discard and expand Explain the notion of discard and expand it to include also discharge of materials it to include also discharge of materials back to the environment (e.g. to back to the environment (e.g. to uncontrolled landfill, to ambient water)uncontrolled landfill, to ambient water)

Physical flows classificationPhysical flows classification

• SEEA-2003SEEA-2003

• Ecosystem inputsEcosystem inputs

• Natural resourcesNatural resources

• ProductsProducts

• ResidualsResiduals

• Each flow uses its own classificationEach flow uses its own classification

Flows from the environment Flows from the environment to the economyto the economy

Flows within the economy and from Flows within the economy and from the economy to the environmentthe economy to the environment

Proposals – Structure of Proposals – Structure of classificationclassification

• Flows from the economy to the environmentFlows from the economy to the environment• Natural resourcesNatural resources• Additional items Additional items

• Flows within the economyFlows within the economy• Flows from the economy to the environmentFlows from the economy to the environment

• Emissions to air Emissions to air • Emissions to water Emissions to water • Solid waste to uncontrolled landfill Solid waste to uncontrolled landfill • Dissipative use and dissipative lossesDissipative use and dissipative losses• Return flows of waterReturn flows of water• Additional items (evaporation, losses, etc.)Additional items (evaporation, losses, etc.)

Proposals on classificationsProposals on classifications

• Use CPC for all physical flows, if relevant Use CPC for all physical flows, if relevant categories exist, and complement it with categories exist, and complement it with additional categories for flows from the additional categories for flows from the environment to the economy and back to environment to the economy and back to the environmentthe environment

• CPC non appropriate for wasteCPC non appropriate for waste• Use EWC Stat for waste – replace CPC 39 Use EWC Stat for waste – replace CPC 39

plus possibly other CPC classesplus possibly other CPC classes

Advantages of the proposalAdvantages of the proposal

• Alignment with economic and waste statisticsAlignment with economic and waste statistics• SNA monetary flows relate to service paid (CPC 94)SNA monetary flows relate to service paid (CPC 94)• SEEA physical flows present the volume (CPC 39)SEEA physical flows present the volume (CPC 39)• Destination of flows seen in the SUT (waste product Destination of flows seen in the SUT (waste product

vs. waste residual)vs. waste residual)• Integration with EW-MFA Integration with EW-MFA • Coherence in recording dissipative use of products (not Coherence in recording dissipative use of products (not

residuals but flows economy to the environment)residuals but flows economy to the environment)• Full consistency with the SEEAWFull consistency with the SEEAW

Waste flowsWaste flows

Proposal on scope of waste Proposal on scope of waste accountsaccounts

• Use broad scope of waste accounts to include:Use broad scope of waste accounts to include:• Flows of discarded materials into ISIC 37Flows of discarded materials into ISIC 37• Flows used as intermediate consumption by Flows used as intermediate consumption by

other industriesother industries• Flows of materials discharged into the Flows of materials discharged into the

environment (e.g. uncontrolled landfill, ambient environment (e.g. uncontrolled landfill, ambient water – air emission covered by emission water – air emission covered by emission accounts)accounts)

• Secondary wasteSecondary waste

Next stepsNext steps

• Outcome of LG discussions will be Outcome of LG discussions will be presented at the next UN Expert Group presented at the next UN Expert Group Meeting on Classifications (Sept 09)Meeting on Classifications (Sept 09)

• Outcome of EGM shared with LGOutcome of EGM shared with LG

Questions to LGQuestions to LG1.1. Do you agree with aligning the definition of products with the Do you agree with aligning the definition of products with the

that of the 2008 SNA and CPC?that of the 2008 SNA and CPC?2.2. Do you agree to use the definition of waste based on EWC?Do you agree to use the definition of waste based on EWC?3.3. Do you agree with the typology of flows proposed: flows from Do you agree with the typology of flows proposed: flows from

the environment to the economy, flows within the economy, the environment to the economy, flows within the economy, and flows from the economy to the environment?and flows from the economy to the environment?

4.4. Do you agree to use CPC to classify all physical flows (except Do you agree to use CPC to classify all physical flows (except for waste) complemented by additional categories?for waste) complemented by additional categories?

5.5. Do you agree to replace CPC Division 39 covering solid Do you agree to replace CPC Division 39 covering solid waste and possibly the most important CPC classes with EWC waste and possibly the most important CPC classes with EWC Stat for classifying waste?Stat for classifying waste?

6.6. Do you agree with the suggested expanded scope of the waste Do you agree with the suggested expanded scope of the waste accounts to include also solid waste discharged to the accounts to include also solid waste discharged to the environment (e.g. uncontrolled landfill), including materials environment (e.g. uncontrolled landfill), including materials discharged to ambient water?discharged to ambient water?

Advantage of the proposalAdvantage of the proposal

• Physical flows in standard tables are consistent Physical flows in standard tables are consistent with the SNA monetary flowswith the SNA monetary flows

• Standard tables identified, if information is Standard tables identified, if information is available all types of losses, including theftavailable all types of losses, including theft

• Supplementary tables regroup the losses to show Supplementary tables regroup the losses to show gross aggregates (and derivation of productivity gross aggregates (and derivation of productivity indicatorsindicators

• Theft is separately identified, if information is Theft is separately identified, if information is available as a different flow neither within the available as a different flow neither within the economy nor as a flow from the environment to economy nor as a flow from the environment to the economythe economy

Disadvantage of the proposalDisadvantage of the proposal

• Energy statistics record Energy statistics record

• production of secondary products gross production of secondary products gross (including losses)(including losses)

• production of primary products net of production of primary products net of losseslosses

• For secondary energy products, standard For secondary energy products, standard tables are inconsistent with energy statisticstables are inconsistent with energy statistics

Questions to the London GroupQuestions to the London Group

1.1. Does the London Group agree with the typology Does the London Group agree with the typology of losses (Section B)?of losses (Section B)?

2.2. Does the London Group considers useful a table Does the London Group considers useful a table on the presentation of gross supply (Tables 2 on the presentation of gross supply (Tables 2 and 5)?and 5)?

3.3. Does the London Group agree with the Does the London Group agree with the suggested recording of losses during extraction, suggested recording of losses during extraction, distribution, storage and conversion as presented distribution, storage and conversion as presented in Tables 3 and 5?in Tables 3 and 5?

4.4. Does the London Group agree with the Does the London Group agree with the supplementary tables for theft?supplementary tables for theft?

classification of physical flows -a proposal – issue 2 bram edens, alessandra alfieri odd...

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