Implementation of energy accounts in Finland

The 7th Oslo Group Meeting, Helsinki

25.10.2012

Jonna Hakala

jonna.hakala@stat.fi

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Background

Energy accounts were the first application of Natural resource accounting compiled at Statistics Finland in late 1980s, on 1985 data

The application was updated in 1995, on 1990 data

Physical Energy Flow Accounts are one module of environmental accounting regulation of the EU

The module is expected to come into force in 2015, and accounts on years 2013-2015 have to be reported to Eurostat in December 2017

Project on energy accounts in Finland started in spring 2012

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Objectives

Energy accounts compatible with other modules of physical and monetary environmental accounts, such as

Air emission accounts

Economy-wide material flow accounts

Environmentally related taxes by economic activity

Compilation system of physical supply and use tables for energy flows in Finland 2008-2011

Identification of elements of energy accounting calculation system that could be integrated into planned production system of energy statistics

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Risks

The biggest risk of the project is the availability and quality of the data at detailed classification levels required for product flows and branches of industry (NACE A*64)

Especially the energy use of the service sector may be problematic to disaggregate into such detailed level

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Organisation

Project group consists of experts on environmental accounts energy statistics air emission statistics and accounts monetary supply-use tables

Units represented in the steering group Environment and Energy Statistics Greenhouse Gas Inventory National Accounts

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The main steps

Identification of data sources

Energy statistics, Energy balance

Data from monetary supply-use tables

Other data sources

Development of methodology and calculation system

Identification of links to production system of energy statistics

Testing the system of energy accounts with 2010 data

Improvements to calculation system

Supply-use tables 2008-2011

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Energy accounts

Physical Energy Flow Accounts (PEFA): Supply-use tables including all energy forms and fuels

Basic structure adopted from the System of Environmental-Economic Accounting (SEEA)

Natural inputs, products, residuals; more than 100 items All branches of industry (NACE A*64), households,

accumulation, import and export, environment

Unit: Terajoule

The main differences with respect to energy statistics:

Branches of industry highly disaggregated, especially in manufacturing industries and services

Residence principle as in National Accounts

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Flows in energy accounts NATURAL INPUTS

(RESOURCE FLOWS, energy statistics classification)

Non Renewables Uranium and thorium ores Anthracite Coking coal Other bituminous coal Sub-bituminous coal Lignite/Brown Coal Peat Crude oil Natural gas liquids Other hydrocarbons Natural gas

Renewables Hydro power Wind power Solar thermal (resource: solar radiation) Solar PV (resource: solar radiation) Tide, Wave and Ocean Geothermal energy Biomass for energy use

PRODUCTS (PRODUCT FLOWS, CPA classification, 69 items)

Other vegetal material and waste Wood Hard coal Lignite Peat Crude oil Black liquor … Motor gasoline, kerosene Electrical energy Biogas ... Municipal wastes (renewables) Municipal wastes (non-renewables) Industrial wastes

RESIDUALS (RESIDUAL FLOWS) Waste (without monetary value) Losses during extraction/abstraction Losses during distribution/transaction Losses during storage Dissipative heat ...

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Branches of industry in energy accounts

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NACE code Branch of industryA 01 Agriculture, hunting and related service activitiesA 02 Forestry, logging and related service activitiesB 05 Fishing, fish farming and related service activitiesCA 10 Mining of coal and lignite; extraction of peatCA 11 Extraction of crude petroleum and natural gas; service activities incidental to

oil and gas extraction excluding surveyingCA 12 Mining of uranium and thorium oresCB 13 Mining of metal oresCB 14 Other mining and quarryingDA 15 Manufacture of food products and beveragesDA 16 Manufacture of tobacco productsDB 17 Manufacture of textilesDB 18 Manufacture of wearing apparel; dressing; dyeing of furDC 19 Manufacture of leather and leather productsDD 20 Manufacture of wood and wood productsDE 21 Manufacture of pulp, paper and paper productsDE 22 Publishing, printing, reproduction of recorded mediaDF 23,1 Manufacture of coke oven productsDF 23,2 Manufacture of refined petroleum productsDF 23,3 Processing of nuclear fuelDG 24 Manufacture of chemicals, chemical products and man-made fibresDH 25 Manufacture of rubber and plastic productsDI 26 Manufacture of other non-metallic mineral productsDJ 27.1-3 Manufacture of basic ferrous metalsDJ 27,4 Manufacture of basic precious and non-ferrous metalsDJ 28 Manufacture of fabricated metal products, except machinery and equipmentDK 29 Manufacture of machinery and equipment n.e.c.DL 30 Manufacture of offi ce machinery and computersDL 31 Manufacture of electrical machinery and apparatus n.e.c.DL 32 Manufacture of radio, television and communication equipment and

apparatusDL 33 Manufacture of medical, precision and optical instruments, watches and

clocksDM 34 Manufacture of motor vehicles, trailers and semi-trailersDM 35 Manufacture of other transport equipment

NACE code Branch of industryDN 36 Manufacture of furniture; manufacturing n.e.c.DN 37 RecyclingE 40,1 Production and distribution of electricityE 40,2 Manufacture of gas; distribution of gaseous fuels through mainsE 40,3 Steam and hot water supplyE 41 Collection, purification and distribution of waterF 45 Construction G 50 Sale, maintenance and repair of motor vehicles and motorcycles; retail sale

of automotive fuelG 51 Wholesale trade and commission trade, except of motor vehicles and

motorcyclesG 52 Retail trade, except of motor vehicles and motorcycles; repair of personal

and household goodsH 55 Hotels and restaurantsI 60,1 Transport via railwaysI 60,2 Other land transportI 60,3 Transport via pipelinesI 61,1 Sea and coastal water transportI 61,2 Inland water transportI 62 Air transportI 63 Supporting and auxiliary transport activities; activities of travel agenciesI 64 Post and telecommunicationsJ 65-67 Financial intermediation: total of energy taxes K 70-74 Real estate, renting and business activitiesL 75 Public administration and defence; compulsory social securityM 80 EducationN 85 Health and social workO 90 Sewage and refuse disposal, sanitation and similar activitiesO 91 Activities of membership organization n.e.c.O 92 Recreational, cultural and sporting activitiesO 93 Other service activitiesP 95 Activities of households as employers of domestic staffQ 99 Extra-territorial organizations and bodies

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Summary Good starting points

Clear target: physical input and output of energy by fuel/product and by branch of industry

Close co-operation between energy statisticians, environmental accountants and national accountants

Domestic demand of energy accounts connected to air emission accounts, material flow accounts, environmental taxes and monetary supply-use tables

Challenges Very detailed level of product flows and branches of industry

(NACE A*64), especially on services Modelling and estimates needed for disaggregation and

residence principle -approach Data confidentiality of some branches and products

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