DANE AND THE PRODUCTION OF ENVIRONMENTAL STATISTICAL INFORMATION – THE CASE OF ENVIRONMENT AND INDUSTRY MODULE Mónica Rodríguez Díaz, mrodriguezd@dane.gov.co Departamento Administrativo Nacional de Estadística - DANE ABSTRACT Starting with 1994, as part of the production of environmental statistics, DANE, , implemented the Industrial Environmental Module (MAI) as a tool for obtaining statistical information related to environmental management, use of natural resources and raw materials and waste generation by the Colombian industry. This initiative has been consolidated as an environmental survey aimed at industrial establishments belonging to branches of economic activity sector interest, which constitute its domain of study. Also served as a starting point for researches aimed at producing strategic statistical environmental information in specific fields of economic activities. The MAI provides the data necessary for the preparation of the accounts of expenditure on environmental protection of the Environment Satellite Account.Annual Manufacturing Survey (EAM) is the primary means of collecting statistical data on the structure, characteristics and evolution of industry in Colombia. Both the MAI, as the EAM, have identified links between the economy and the environment through the generation of sectoral indicators and environmental competitiveness; likewise provided inputs for the development and dissemination of statistics derived feed simulation models, which respond to information needs in the formulation, monitoring and evaluation of environmental and sector policies. Additionally, these instruments have led to the development of mechanisms for validating the quality of information and expanding the domain of environmental questionnaire survey. In prospect is expected to strengthen the validation and compilation of data from both surveys, as well as the unification of the collection channel, leading to greater efficiency and effectiveness in delivering information. Key words: “environmental information, expenditure, investment, environmental survey, development, competitiveness, industry, indicators.” 1. THE INDUSTRIAL ENVIRONMENTAL MODULE The experience of the National Statistics Department (DANE, Spanish acronym) in connection with the production of environmental statistics information began in the early 1 1990’s as a result of the need to have a registry that would show both investments and expenditures made by industrial establishments for purposes of preventing, reducing and mitigating environmental degradation. The information gathered served as a basis for building an environmental-protection expenditure account whose structure was defined under the Integrated Economic-Environmental Accounting Pilot Project for Colombia (COLSCEA, Spanish acronym), which was jointly developed by the Colombian Inter-Institutional Environmental Accounts Committee (CICA, Spanish acronym), and led by the DANE and the United Nations Statistical Division (UNSTAT). The tool chosen for gathering information on environmental expenditure and investment was the Industrial Environmental Module (MAI, Spanish acronym). The original version of the MAI was implemented in 1994 and its structure comprised three components, the first of which involved the identification and recordation of investments in fixed assets, which were represented by tools and equipment, construction and infrastructure and a number of further investments designed to ensure environmental prevention, recovery and preservation. The second component involved costs and expenses incurred in environmental protection activities such as staff wages and salaries, contracting of specialized labor, product and supply costs, electrical power consumption costs, education, training, dissemination and advertising costs and further contributions to environmental programs. Finally, the third component involved the acquisition of clean technologies and research costs associated with the implementation thereof. A cross-cutting matrix arranged according to environmental purpose that would also make it possible to establish links between resources such as water, air, soil and noise was prepared. Based on the study titled “Diagnosis and Control of Environmental Pollution in Colombia”, which was conducted by the National Planning Department with the support of the United Nations Development Program (UNDP), the most highly polluting economic activities that take place in Colombia were selected. Thirty-five such activities were identified as a result of this selection and the appropriate industrial establishment directory was compiled based on the International Standard Industrial Classification of All Economic Activities (ISIC), thereby defining the scope of the study conducted by the MAI. This cope was subsequently adjusted through the characterization of six industrial corridors where the country’s industrial production is concentrated. The purpose of environmental protection expenditure and investment has been classified on the basis of the structure of the Classification of Environmental Protection Activities and Expenditure (CEPA). Adapting this classification to the MAI required six basic categories according to their relevance, air and climate protection, wastewater management, waste management, soil protection, underground and surface water, noise reduction, biodiversity and landscape protection and further environmental protection activities. From 1994 through 2006 the MAI was used as an environmental information gathering module attached to the Annual Manufacturing Survey (EAM, Spanish acronym). This economic industrial survey is the country’s main statistical tool for obtaining information enabling to establish both the characteristics and the evolution of Colombia’s industrial manufacturing sector. The EAM comprises industrial establishments from the various activity branches according to the ISIC codes of every economic activity1. Because of the differences 1 The DANE prepared the CIIU, Rev. 3.1 A.C., which is an adaptation in Spanish of the ISIC for Colombia. 2 in the technical profiles of survey respondents and the MAI’S response indexes in respect of the industrial survey, it was decided that starting in 2007 the MAI would be applied as a separate survey. Both the dynamics and the themes associated with environmental management, along with environmental accounting and the evolution of Colombia’s industry sector itself have led to the establishment of a new version of the MAI. The re-design of this version involved the expansion of information coverage and themes, thereby enabling the inclusion of aspects such as waste recycling and disposal amongst other factors The DANE’s technical team reviews pollution studies that are available in-country, as well as environmental rules and regulations on a periodical basis. Furthermore, further research studies conducted by the DANE, as those revolving around technology development and innovation, are used to verify the information recorded in terms of environmental management investment. This contextual information enables to conduct a review of appropriate criteria for purposes of including new economic activities intended to be studied. The MAI’S re-design was carried out in 2007 and included a number of adjustments in the method for requesting information from the sources in accordance to industry records. Aspects relating to hazardous, harmful waste, water resources and overall environmental management were also incorporated. While the MAI’S current structure still has the investment and expenditure component according to environmental category, there are several further costs and expenditures that are expressly identified, but still cannot be classified according to a specific environmental category as they relate to payments made in respect of environmental licenses, permits, rates, and fines. Information on environmental training and education, expenses relating to environmental management, research and development, as well as other environmental contributions are also recorded. As far as the solid waste generation component is concerned, inquiries are made concerning organic, plastic, paper and cardboard, rubber, textile, wood, glass and metal waste and the appropriate quantities thereof, as well the waste percentage that was used by each establishment, the percentage that was marketed, and the final disposal thereof. One further request has to do with using the attached listing to identify hazardous waste with identifying hazardous waste produced and that same variables are recorded. As for water resources management, the information requested has to do with the total volume of used water stated in cubic meters according to collection method (aqueduct, deep well, surface water), as well as with the total volume of wastewater whilst specifying the amount of re-used, untreated spilled water, while requests designed to specify the treatment method of treated water are also made. Finally, the component related to environmental-management instruments is used to identify the appropriate legal, regulatory, planning, technological, financial and/or administrative tools designed to provide support to the various environmental protection activities. 2. USES AND PERSPECTIVES Data on environmental protection expenditure and investment provided by the MAI have been used within the framework of the Environmental Satellite Account as an input for calculating 3 the production, income generation, and gross fixed capital formation accounts. This account is disaggregated according to environmental purpose and industrial corridor so as to enable the identification of the purpose of this expenditure. Complementarily, progress has been made towards designing and building environmental indicators in the manufacturing-sector, for purposes of helping to identify sector trends and patterns of environmental interest; as well as to establish relations between the production sector and the environment in terms of consumption, waste generation and production technologies; and following-up of regulatory, political and economic aspects. These indicators help to enhance the understanding of the environmental dimension of the various economic activities in terms of the use of natural resources as raw materials, water consumption, energy intensity, pollution prevention methods, and capital and investment composition among others. Economic and environmental information from industrial locals as a whole enables to shed light on the relationships existing between the productive sectors and the environment. The results of the Industrial Environmental Module prepared by the DANE have been incorporated into national public policy-making efforts, particularly as regards competitiveness policies. The information provided by the DANE made it possible to define those environmental factors relating to the manufacturing industry that have an impact on the country’s competitiveness and were used to prepare policy guidelines and the appropriate action plan. In prospective terms, the environmental information on the manufacturing industry, which was obtained from the MAI, has also been helpful in determining the short, medium and long-term impact of public policy; as well as in shaping the impact of financial and institutional mechanisms on the adaptability capacity of economic sectors to climate change. A pilot project undertaken by Colombia’s National Planning Department in which the DANE is involved seeks to quantify and analyze the economic changes brought about by climate change through the use of analytical models that integrate statistical information on various topics. The implementation of the MAI relies on validation mechanisms that enable to verify consistency, review the coherence of economic and environmental information, whilst ensuring the quality thereof. To such end information collations between the economic survey (EAM) and the environmental survey (MAI) are performed while taking into account the same establishments. Eighteen different indicators are calculated in order to validate the information reported by the environmental survey in terms of economic validation and consistency criteria that are peculiar to the EAM. Some examples are the indicators relating to investments in machinery and equipment for environmental protection and preservation purposes/investments in industrial machinery and equipment data from the EAM. The same applies to social security contributions by staff engaged in environmental protection activities/total mandatory employer’s contributions, healtcare, pensions and social insurances from the EAM. 4 Source: DANE Chart 1. Environmental protection of industry in Colombia: investments by environmental category, 2007, percentage of total Source: DANE Chart 2. Environmental protection of industry in Colombia: current expenditures by environmental category, 2007, percentage of total References - Organization for Economic Cooperation and Development (OECD). (1993). Indicators for the Integration of Environmental Concerns into Transport Policies. OECD Environment Monograph. OECD, Paris. - Organisation for Economic Cooperation and Development (OECD). (1998). Environmental Indicators. Towards Sustainable Development, Paris. - Quiroga, R. (2007). Indicadores ambientales y de desarrollo sostenible: avances y perspectivas para América Latina y el Caribe (Environmental and Sustainable Development indicators; Progress and Perspectives for Latin-America and the Caribbean). Serie Manuales - (Handbook Series). Número 55 (Issue No. 55); Santiago de Chile, ECLAC. United Nations (UN) (2007). Indicators of Sustainable Development: Guidelines and Methodologies; Third Edition, New York. 5