13th Meeting of the London Group on Environmental Accounting
29 September - 3 October 2008,
Brussels, Belgium
Karl Schoer, consultant UNSD

The classifications are designed to meet the purpose of the different sub-modules of SEEA-MFA that are proposed for populating the system with data
The proposal in this paper try to follow the recommendations of the last LG
- Alignment with Eurostat EW-MFA classifications
- Alignment with the European waste statistic classification (EWC-Stat)
- Differentiation of waste into waste products and waste residuals
- Reconciliation of EWC-Stat and CPC on waste
- Solution for treatment of cultivated biomass
- Development of purpose classifications

EW-MFA as a fully integrated sub-module of SEEA-MFA
Category of material
Products
Natural inputs
Residuals
Inputs to the economy from the environment and the ROW economy
Flows within and from the economy
EW-MFA
Agricultural, fishery and related products
Wood and wood produts
Fosssil fuel and related products
Metals and related product
Non-metallic minerals and related products
Water
EW-MFA
Other products
Specific substances
EW-MFA
Water
EW-MFA
EW-MFA
Air emissions
Solid waste
Water emissions
Water
Dissipative emissions
Balancing items output side
Covered by EW-MFA
Covered by other modules
Not covered by any module
Not applicable
Outputs from the economy to the environment and the ROW economy
EW-MFA
EW-MFA
EW-MFA
EW-MFA
"Resource accounts"
"Emission accounts"

Mass units
Supplies
Output Final consumption
Gross capital formation
Controlled landfills
Inputs from the environment
Products within the economy
Residuals within the economy
Outputs to the environment
Total
Uses
Intermediate consumption
Final consumption
Gross capital formation
Controlled landfills
Inputs from the environment
Products within the economy
Residuals within the economy
Outputs to the environment
Total
Not covered by MFA
Imports Environment Total
Exports Environment Total

Classifications of material by type (physical or chemical characteristics) of material
- Classification of environmental inputs
- Classification of outputs to the environment (residuals)
- Classification of flows between economic units: (products, residuals)
Classifications of transaction in material
- The principal flows of the supply and use tables
- Classification of industries for output of products and residuals and intermediate consumption of products, natural inputs and residuals
- Classification of waste as a residual by destination (intermediate use by type of treatment and recycling, controlled landfills by type of storage, environment by type of disposal
- Classifications of origin and destination of water flows (water abstracted from the environment by source, water as a product by type of use, water returned to the environment by origin, waste water by destination

“Natural inputs” to the economy originate from the environmental sphere and where generated by a natural or semi-natural process.
Natural resources are converted into products by crossing the border between the environment and the economy with the act of extraction, i.e. they have an economic value.
Balancing items input side originate from the environment and enter the economy. They have to be regarded in order to keep the principle of mass balancing. But unlike natural resources, those balancing items are not converted into products
The Central Product Classification (CPC) was used for defining the natural resource items of the classification for natural inputs.
The degree of detail follows predominantly the requirements of EW-MFA

MFA code
CPC Vers. 2
(draft) code
Description
A
A.0
A.0.1
A.0.2
0 + 1
0
01
02
Natural resources
Biological resources from agriculture, forestry and fishery
Resources from agriculture, horticulture and market gardening
Live animals and animal resources (excluding meat)
A.0.3 03
A.0.3.1 031
A.0.3.2 032
A.0.4
04
A.0.4.2 042
A.1
1 (excl.17)
A.1.1
11 (excl. 1102,
1104)
A.1.2
12
A.1.3
13ex
A.1.4
14 ex
A.1.5
15
A.1.6
16
A.1.8
18
B n.a.
Forestry resources
Wood in the rough
Cultivated
Non-cultivated
Non-wood forest resources
Fish and other fishing resources
Cultivated
Non-cultivated
Ores and minerals, water
Coal and lignite, peat (excl. agglomerated coal and lignite)
Crude petroleum and natural gas
Uranuim and thorium ores (excl. concentrates)
Metal ores (excl. concentrates)
Stone, sand and clay
Other minerals
Water abstraction
Balancing items input side
Item included as natural input
Item not included as natural input
1) Excluding natural water taken up directly by cultivated crops, plants and trees
2) Excluding natural water taken up directly by cultivated crops, plants, trees and animals
Ecosystem approach
Harvest approach
Extended harvest approach
1) 2)

B
B.1
B.2
B.3
B.4
B.5
B.6
B.7
B.9
MFA code
CPC Vers. 2
(draft) code
Description n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Balancing items input side
Oxygen for combustion processes
Oxygen for respiration of cultivated animals and aquatic resources
Oxygen for human respiration
Nitrogen for Haber-Bosch process
Carbon dioxide for respiration of cultivated crops, plants, and trees
Soil minerals
Unused biomass from parks and gardening for waste collection
Contaminated soils and polluted dredging spoils n.a.
Item included as natural input
Item not included as natural input
Ecosystem approach
Harvest approach
Extended harvest approach

Outputs to the environment are usually residuals with the exception of dissipatively used products.
Residuals are regarded as the incidental and undesired outputs from production and consumption processes within the economy which have no use for the generator.
Residuals can appear in solid, liquid and gaseous form. They can be directly discharged to the environment, but they can also be absorbed by the economy for intermediate use (recycling, incineration or other treatment) or final use (controlled landfills).
The degree of detail follows predominantly the requirements of EW-MFA and the
„emission accounts“

MFA
Code
A
B
C
D
E
F
G
Description
Emissions to air
Solid waste
Emissions to water
Dissipative use of products n.e.c.
Dissipative losses (e.g abrasion from tires, friction products, buildings and infrastructure)
Waste water
Balancing items output side: water vapor and other water losses

MFA
Code
A
A.1
A.1.1
A.1.2
A.1.3
A.1.4
A.2
A.3
A.3.1
A.3.2
A.4
A.5
A.6
A.7
A.8
A.9
A.9.1
A.9.2
A.10
A.11
A.12
A.13
A.14
Emissions to air
Description
Emissions to air
Carbon dioxide (CO
2
)
Carbon dioxide (CO
2
) other than from biomass combustion and respiration of humans and livestock
Carbon dioxide (CO
2
) from biomass combustion
Carbon dioxide (CO
2
) from respiration of humans (balancing item output side)
Carbon dioxide (CO
2
) from respiration of livestock (balancing item output side)
Methane (CH4)
Dinitrogen oxide (N
2
O)
Dinitrogen oxide (N
2
O) other than from dissipative use as a product
Dinitrogen oxide (N
2
O) from dissipative use as a product
Nitrous oxides (NOx)
Hydroflourcarbons (HFCs)
Perflourocarbons (PFCs)
Sulfur hexaflouride
Carbon monoxide (CO)
Non-methane volatile organic compounds (NMVOC)
Non-methane volatile organic compounds (NMVOC) other than from dissipative use as a product
Non-methane volatile organic compounds (NMVOC) from dissipative use as a product
Sulfur dioxide (SO
2
)
Ammonia (NH3)
Heavy metals
Persistent organic pollutantsPOPs
Particles (e.g PM10, Dust)

Classification of solid waste materials is based on the European waste classification by type of material (EWC-Stat).
Unsolved issue: reconciliation of EWC-Stat and CPC :
The London Group requested to reconcile the EWC-Stat classification for waste and the classification for waste in the CPC. The EWC-Stat has clear analytical advantages over the CPC treatment of waste. CPC in principle covers everything that is transacted including waste, disregarding whether it is a product or not. Therefore it appears necessary to develop a correspondence with EWC-Stat.
But that is not an easy task. We will have to wait for the results of ongoing work done by Eurostat.

B.8
B9
B10
B11
B12
B13
B14
B
B.1
B2
B3
B5
B6
B7
MFA
Code
EWC-
Stat code
Description
08
09
10
11
12
13 n.a.
01
02
03
05
06
07
Solid waste
Compound waste
Chemical preparation waste
Other chemical waste
Health care and biological waste
Metallic wastes
Non-metallic waste
Discarded equipment
Animal and vegetable wastes
Mixed ordinary waste
Common sludges
Mineral waste
Solidified, stabilized and vitrified waste
Radioactive waste

Definition: According the SEEA manual on water (SEEAW) emissions to water describe the flows of pollutants added to waste water as a result of production and consumption.
For establishing the classification of emissions to water the classification of the Eurostat manual on EW-MFA was used.
The only difference is that materials dumped at sea are regarded as waste in this classification and not as emissions to water

Emissions to water
MFA
Code
C
C.1
C.2
C.3
C.4
Description
Emissions to water
Nitrogen compounds (N), excl. emissions from agriculture (dissipative use)
Phosphorus compunds (P), excl. emissions from agriculture (dissipative use).
Heavy metals
Other substances and (organic) materials

Dissipative use of products and dissipative losses
Description MFA
Code
D
D.1
D.2
D.3
D.4
D.5
D.6
D.6.1
D.6.2
D.7
E
Dissipative use of products n.e.c.
Organic fertilizer (manure)
Mineral fertilizer
Sewage sludge
Compost
Pesticides
Seeds
Seed of cereals
Other seed
Other products for dissipative use (e.g. materials spread on roads, solvents)
Dissipative losses (e.g abrasion from tires, friction products, buildings and infrastructure)

F
G
G.1
Description
Waste water
Balancing items output side: water vapor and other water losses
Evaporation of water from production processes other than from combustion of fuels or from other excorporated water
G.2
G.3
G.4
Losses in distribution of water not because of leakages
Evaporation of excorporated water from fuel combustion
Other evaporation of excorporated water

Products: based on CPC. The degree of detail follows predominantly the requirements of EWMFA and the „resource accounts“
Residuals: already covered under classification on outputs to the environment

Based on ISIC
The degree of detail follows predominantly the requirements of sub-modules on „resources“ and „emissions“

Based on EWC-Stat

R 4
R 5
R 6
R 7
R 8
R 9
R 10
R 11
R 12
R 13
EWC-
Stat code
R 1
R 2
R 3
Description
D 8
D 9
D 10
D 11
D 13
D 14
D 15
Use principally as a fuel or other means to generate energy
Solvent reclamation/regeneration
Recycling/reclamation of organic substances which are not used as solvents (including composting and other biological transformation processes)
Recycling/reclamation of metals and metal compounds
Recycling/reclamation of other inorganic materials
Regeneration of acids or bases
Recovery of components used for pollution abatement
Recovery of components from catalysts
Oil re-refining or other reuses of oil
Land treatment resulting in benefit to agriculture or ecological improvement
Use of wastes obtained from any of the operations numbered R 1 to R 10
Exchange of wastes for submission to any of the operations numbered R 1 to R 11
Storage of wastes pending any of the operations numbered R 1 to R 12 (excluding temporary storage,pending collection, on the site where it is produced)
Biological treatment not specified elsewhere in this Annex which results in final compounds or mixtures which are discarded by means of any of the operations numbered D 1 to D 7 and D 9 to D 12
Physico-chemical treatment not specified elsewhere in this Annex which results in final compounds or mixtures which are discarded by means of any of the operations numbered D 1 to D 8 and D 10 to D 12
(e.g. evaporation, drying, calcination, etc.)
Incineration on land
Incineration at sea
Blending or mixing prior to submission to any of the operations numbered D 1 to D 12
Repackaging prior to submission to any of the operations numbered D 1 to D 13
Storage pending any of the operations numbered D 1 to D 14 (excluding temporary storage, pending collection, on the site where it is produced)

EWC-
Stat code
D 1
D 3
D 4
D 5
D 12
Description
Deposit into or on to land (e.g. landfill, etc.)
Deep injection (e.g. injection of pumpable discards into wells, salt domes or naturally occurring repositories,etc.)
Surface impoundment (e.g. placement of liquid or sludgy discards into pits, ponds or lagoons, etc.)
Specially engineered landfill (e.g. placement into lined discrete cells which are capped and isolated from one another and the environment, etc.
Permanent storage (e.g. emplacement of containers in a mine, etc.)

EWC-
Stat code
D 2
D 6
D 7 n.a
Description
Land treatment (e.g. biodegradation of liquid or sludgy discards in soils, etc.)
Release into a water body except seas/oceans
Release into seas/oceans including sea ‑ bed insertion
Other dumping of waste to the environment

Based on SEEAW

1. Do you agree to the proposed classification of natural inputs and do you agree use the CPC for establishing that classification?
2. Do you agree to the proposed classification for outputs to the environment?
3. Do you agree to use EWC-Stat classification for establishing the classification on waste?
4. Do you agree to the proposed degree of detail of the product classification?
5. Do you agree to the proposed degree of detail of the classification of industries?
6. Do you agree to the proposed classifications on waste by purpose?