Measuring environmental sustainability of manufacturing - insights from environmental accounts
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1 Measuring environmental sustainability of manufacturing - insights from environmental accounts OECD Workshop on Sustainable Manufacturing Production and Competitiveness, June 2007, Copenhagen By Head of Group, Sustainable Consumption and Production European Environment Agency Lars.mortensen@eea.europa.eu 1 - OECD workshop on manufacturing, June 2006
2 The European Environment Agency (EEA) Independent EU institution in Copenhagen since 1994 Provide decision-makers with information needed for sound and effective policies to protect the environment and support sustainable development Supported by topic centres, including the European Topic Centre on Resources and Waste Management (ETC/RWM) 2 - OECD workshop on manufacturing, June 2006
3 Focus on environmental sustainability: Answer 3 key questions 1. Consumption perspective: What is the contribution of household consumption to environmental pressures compared to that of production and service activities? 2. Manufacturing perspective: How much does manufacturing contribute to pressures on the environment? 3. Socio-economic perspective: What is the socio-economic profile of manufacturing compared to other sectors? 3 - OECD workshop on manufacturing, June 2006
4 Sources of information Graphs prepared for this workshop by the EEA European Topic Centre on Resources and Waste (ETC/RWM), Stephan Moll Data from Eurostat NAMEA survey 2006 and from EEA-ETC/RWM project on environmental impacts from production and consumption using the NAMEA accounting tool 4 - OECD workshop on manufacturing, June 2006
5 Introducing environmental accounts NAMEA: National Accounting Matrixes with Environmental Accounts NAMEA collects environmental pressure data in a way compatible to economic statistics - making use of input-output matrices Can show selected environmental pressures (on climate change, air pollution and resource use) by economic sector (including manufacturing) or by consumption cluster Manufacturing is basically NACE category D 5 - OECD workshop on manufacturing, June 2006
6 Introducing environmental accounts (continued) Environmental pressures measured in NAMEA: Global warming potentials (greenhouse gas emissions) Acidification potentials (emissions of SOx, NOx and ammonia) Tropospheric ozone forming potentials (emissions of substances for ground level ozone formation) Material resource use (direct material input) 6 - OECD workshop on manufacturing, June 2006
7 per cen t o f to ta l p r essur es 1. Consumption perspective: What is the contribution to environmental pressures? Global warming and acidification potential by economic activities versus private households, EU25 Global Warming Potential economic activities (production and services) private households p e r c e n t o f to ta l p ressures Acidification Potential Industries private households 7 - OECD workshop on manufacturing, June 2006
8 1. Consumption perspective (continued) NAMEA enables attributing pressures directy and indirectly (through production) to consumption categories EEA has identified three categories which through their life-cycle cause about 70% of global warming potential and resource use: Eating and drinking (food and beverages) Mobility (transport of persons and goods) Housing and infrastructures 8 - OECD workshop on manufacturing, June 2006
9 1. Consumption perspective (continued) EU8, 2000 Global Warming Potential Others; 29,6% Electrical energy, gas, steam and hot w ater ; 13,5% Products of agriculture, hunting and forestry ; 3,6% Priv.Housh. - Tranport; 11% Food products, beverages and tobacco ; 8,8% Public administration services; compulsory social security services ; 3,6% Construction w ork ; 7,3% Priv.Housh. Heating; 8% Transport equipment ; 4,0% Transport, storage and communication services ; 4,4% Wholesale and retail trade services; repair services; 6,1% Basic needs areas: Eating & Drinking Housing & infrastructures Tansport of persons and goods 9 - OECD workshop on manufacturing, June 2006
10 1. Consumption perspective (continued) EU8, 2000 Material Use Others; 36% Hotel and restaurant services ; 3,9% Construction w ork ; 26,2% Food products, beverages and tobacco ; 12,3% Electrical energy, gas, steam and hot w ater ; 5,3% Wholesale and retail trade services; repair services; 4,3% Coke, refined petroleum products and nuclear fuel ; 5,5% Products of agriculture, hunting and forestry ; 6,8% Basic needs areas: Eating & Drinking Housing & infrastructures Tansport of persons and goods 10 - OECD workshop on manufacturing, June 2006
11 2. How much does manufacturing contribute to environmental pressures? NAMEA enables comparing environmental sustainability of manufacturing to that of other sectors Manufacturing contributes 22% of European global warming potential (climate change), 14% of acidification, and 21% of tropospheric ozone Major contributors to global warming within manufacturing are: basic metals; coke, refined petroleum products and fuel and chemicals; other non-metalic mineral products (cement) 11 - OECD workshop on manufacturing, June 2006
12 2. Manufacturing (continued) - Contribution to climate change (EU25) Privat e ho useholt s Transport, st orage and communication Electricity, gas and water supply M anufacturing A gricult ure, hunt ing, f orest ry, and fishing Real est at e, public ad minist rat io n, educat ion, healt h and ot her social service activities W holesale and ret ail t rade; repair of motor vehicles, motorcycles and personal and household goods Construction ca. 22 % M ining and quarrying 12 - OECD workshop on manufacturing, June 2006
13 2 Manufacturing (continued) contribution to climate change (EU25, 2004) 2004 Real estate, public administration, education, health and other social service activities 6% Financial intermediation 0% Hotels and Restaurants 0% Wholesale and retail trade; repair of motor vehicles, motorcycles and personal and household goods 2% Private householts 20% Transport, storage and communication 9% Construction 1% Agriculture, hunting, forestry, and fishing 12% Electricity, gas and w ater supply 26% Manufacturing 22% Mining and quarrying 2% 13 - OECD workshop on manufacturing, June 2006
14 2 (continued) Global warming potential by manufacturing category (EU25) Global Warming Potential (1000 t CO2-equivalents) OECD workshop on manufacturing, June 2006 Recycling Manufacture of furniture; miscellaneous manufacturing Manufacture of transport equipment Manufacture of electrical and optical equipment Manufacture of machinery and equipment Manufacture of fabricated metal products, except machinery and equipment Manufacture of basic metals Manufacture of other non-metallic mineral products Manufacture of rubber and plastic products Manufacture of coke, refined petroleum products and nuclear fuel; chemicals, chemical products and man-made fibres Manufacture of pulp, paper and paper products; publishing and printing Manufacture of w ood and w ood products Manufacture of textiles and textile products; leather and leather products Manufacture of food products, beverages and tobacco products
15 3. What is the socio-economic profile of the manufacturing sector? (EU25, 2004) Employed persons Gross Value Added Energy Tropospheric Ozone Acidification Global Warming Potential Manufacturing 14% 17% 19% 19% 21% 22% 0% 10% 20% 30% 40% 50% in % of total economy 15 - OECD workshop on manufacturing, June 2006
16 3. (continued) compared to services? (EU25, 2004) Real estate, public administration, education, health and other social service activities Employed persons Gross Value Added Energy Tropospheric Ozone Acidification Global Warming Potential 4% 3% 4% 6% 41% 46% 0% 10% 20% 30% 40% 50% in % of total economy 16 - OECD workshop on manufacturing, June 2006
17 3. (continued) compared to the primary sector? (EU25, 2004) Employed persons Gross Value Added Energy Tropospheric Ozone Acidification Global Warming Potential Agriculture, hunting, forestry, and fishing 2% 2% 6% 12% 18% 36% 0% 10% 20% 30% 40% 50% in % of total economy 17 - OECD workshop on manufacturing, June 2006
18 3 (continued) How does it look for specific manufacturing categories? (EU25, 2004) Manufacture of food products, beverages and tobacco products Employed persons Gross Value Added Energy Tropospheric Ozone Acidification Global Warming Potential 1% 2% 2% 2% 2% 2% 0% 5% 10% 15% 20% 25% in % of total economy Manufacture of coke, refined petroleum products and nuclear fuel; chemicals, chemical products and man-made fibres Employed persons Gross Value Added Energy Tropospheric Ozone Acidification Global Warming Potential 1% 2% 6% 6% 7% 7% 0% 5% 10% 15% 20% 25% in % of total economy 18 - OECD workshop on manufacturing, June 2006
19 3 (continued) Eco-efficiency: Global warming potential per economic output (EU25) CO2-equivalents per unit economic output [kg/eur] 3,5 3 2,5 2 1,5 1 0, Electricity, gas and water supply Agriculture, hunting, forestry, and fishing Mining and quarrying Transport, storage and communication Manufacturing services 19 - OECD workshop on manufacturing, June 2006
20 3 (continued) Eco-efficiency: Global warming potential per economic output (EU25) CO2-equivalents per unit economic output [kg/eur] 1,6 1,4 1,2 1 0,8 0,6 0,4 0, Manufacture of other non-metallic mineral products Manufacture of coke, refined petroleum products and nuclear fuel; chemicals, chemical products and man-made fibres Manufacture of pulp, paper and paper products; publishing and printing Manufacture of food products, beverages and tobacco products 20 - OECD workshop on manufacturing, June 2006
21 To conclude 1. Production and services cause 80-90% of key environmental pressures from the EU households 10-20%. Production-consumption activities related to eating and drinking, mobility and housing cause about 70% of pressures 2. Manufacturing contributes about 20% of total European pressures on the environment 3. Manufacturing in the EU contributes about the same share of employment and value as to pressures on the environment 21 - OECD workshop on manufacturing, June 2006
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