Archive:Air emissions accounts statistics

Data from October 2011, most recent data: Further Eurostat information, Main tables and Database.

Air emissions accounts record emissions of greenhouse gases and air pollutants in the European Union (EU) showing the economic activities responsible for their production (in line with the ‘polluter pays’ principle), following the same classification that is used within national accounts, namely the statistical classification of economic activities in the European Community (NACE). Air emissions accounts are thus an extension of emissions inventories, such as those used for official reporting under international obligations (for example, the Kyoto Protocol).

Air emissions accounts are a statistical information system that combines air emissions data and economic data from national accounts. Their main purpose is to provide data for integrated environmental-economic analyses and modelling to supplement traditional economic data. This article analyses the emissions and intensity of greenhouse gases (GHGs), acidifying substances and tropospheric ozone precursors (TOPs) in the EU-27 on the basis of an analysis of six economic activities that are responsible for their generation.

Table 1: Differences between inventories and accounts

Figure 1: Greenhouse gas emissions, analysis by activity, EU-27, 1998 and 2008 (1)
(% of total, based on tonnes of CO₂ equivalents of CO₂, CH₄ and N₂O) - Source: Eurostat (env_ac_ainacehh)

Figure 2: Emissions of acidifying substances, analysis by activity, EU-27, 1998 and 2008 (1)
(% of total, based on tonnes of SO₂ acid equivalents of SO_x, NH₃ and NO_x) - Source: Eurostat (env_ac_ainacehh)

Figure 3: Emissions of tropospheric ozone precursors, analysis by activity, EU-27, 1998 and 2008 (1) (% of total, based on tonnes of tropospheric ozone formation potential (TOFP) equivalents)- Source: Eurostat (env_ac_ainacehh)

Figure 4: Greenhouse gas intensity, analysis by economic activity, EU-27, 1998 and 2008 (1)
(tonnes of CO₂-equivalents of CO₂, CH₄ and N₂O per EUR million of gross value added at basic prices) - Source: Eurostat (env_ac_ainacehh) and (nama_nace31_k)

Figure 5: Acidifying substances intensity, analysis by economic activity, EU-27, 1998 and 2008 (1)
(tonnes of SO₂ acid equivalents of SO_x, NH₃ and NO_x per EUR million of gross value added at basic prices) - Source: Eurostat (env_ac_ainacehh) and (nama_nace31_k)

Figure 6: Tropospheric ozone precursors intensity, analysis by economic activity, EU-27, 1998 and 2008 (1)
(tonnes of NMVOC-equivalents of NO_x, NMVOC, CO and CH₄ per EUR million of gross value added at basic prices) - Source: Eurostat (env_ac_ainacehh) and (nama_nace31_k)

Table 2: Calculation of aggregated environmental pressures

Main statistical findings

Greenhouse gas emissions

Greenhouse gas emissions for the purpose of this article comprise carbon dioxide, nitrous oxide and methane; emissions of these three gases resulting from economic activities stood at 4 176 million tonnes of carbon dioxide equivalents in 2008; this was 2.4 % lower than in 1998. The development of greenhouse gas emissions over this period showed generally quite small shifts in the structure of emissions according to economic activity (see Figure 1). The biggest change was in relation to the transport, storage and communication sector (which excludes the use of private vehicles – reported under households); its share of greenhouse gas emissions rose by 3.2 percentage points.

The overall level of greenhouse gas emissions fell for four of the six activities covered in Figure 1 – by far the largest decline in emissions was recorded for mining and quarrying, where total greenhouse gas emissions fell by 29.5 % (reflecting, at least to some degree, a reduction in mining activity as natural resources were exhausted or were no longer economically viable for extraction). The manufacturing sector saw its level of greenhouse gas emissions fall by 9.6 % between 1998 and 2008; part of the reduction resulted from a slowdown in manufacturing activity as a result of the financial and economic crisis. On the other hand, the transport, storage and communication sector reported that its greenhouse gas emissions rose overall by 29.8 % over the most recent decade for which data are available, while a much smaller increase (1.1 %) was recorded for electricity, gas and water supply.

Emissions of acidifying substances

EU-27 emissions of acidifying substances totalled 21.3 million tonnes of acid equivalents in 2008; this was 28.6 % lower than in 1998. The largest emitters of acidifying substances (which for the purpose of this article comprise sulphur oxides (SOx), nitrogen oxides (NOx) and ammonia (NH3)) were agriculture, hunting, forestry and fishing with a 35.8 % share of the EU-27 total in 2008 (mainly from ammonia emissions), transport, storage and communication with 22.0 % (mainly through the combustion of fossil fuels leading to emissions of nitrogen oxides and sulphur dioxide), and electricity, gas and water supply with 20.8 % (especially from thermal power plants using coal). Together they accounted for almost four fifths (78.5 %) of the EU-27’s total emissions of acidifying substances in 2008. Some acidifying substances react with the water in the atmosphere and subsequently result in acid rain, which in turn can damage forests, plants, fresh waters and soils as well as buildings and infrastructure.

There was a rapid increase in the share of emissions of acidifying substances coming from transport, storage and communication activities and from agriculture, hunting, forestry and fishing between 1998 and 2008. The relative share of the former rose by 7.9 percentage points within the EU-27, while the increase for the latter was 7.0 percentage points. In contrast, the relative importance of the electricity, gas and water supply sector fell by 12.1 percentage points during the ten-year period under consideration, as this activity cut more than half (-54.8 %) of its emissions of acidifying substances between 1998 and 2008 (these changes may be associated with a switch in the energy mix to cleaner fuels for power generation). Indeed, the overall level of emissions of acidifying substances fell for five of the six activities covered in Figure 2, with the only exception being the transport, storage and communication sector, where emissions rose by 11.4 % overall between 1998 and 2008.

Emissions of tropospheric ozone precursors

Emissions of tropospheric ozone precursors (TOPs), substances that lead to the formation of ozone in the part of the atmosphere closest to the earth's surface as a result of photochemical reactions, have negative impacts on human health including irritation of the respiratory system, exacerbation of asthma, lung diseases, and even premature death. For the purposes of this article, tropospheric ozone precursors comprise nitrogen oxides (NOx), non-methane volatile organic compounds (NMVOCs), carbon monoxide (CO) and methane (CH4).

There were 22.0 million tonnes of emissions of tropospheric ozone precursors in the EU-27 in 2008; this figure was 16.0 % lower than in 1998. The transport, storage and communication sector was responsible for the highest share of EU-27 tropospheric ozone precursor emissions, accounting for nearly one third (30.1 %) of the total in 2008. It was closely followed by manufacturing (27.0 %), while the shares for agriculture, hunting, forestry and fishing (15.9 %) and other services and construction (14.0 %) were somewhat lower. Unlike the other types of air emissions, the electricity, gas and water supply sector had a relatively low share of total emissions of tropospheric ozone precursors (11.0 %).

When looking at the period from 1998 to 2008, there was an overall reduction in the level of tropospheric ozone precursors for five of the six economic activities shown in Figure 3. The only exception was the transport, storage and communication sector, where emissions of tropospheric ozone precursors rose by 9.8 % overall during the ten-year period under consideration, or by 7.1 percentage points in terms of their relative share of total emissions of tropospheric ozone precursors.

As such, the transport, storage and communication sector recorded an increase in its level of greenhouse gas, acidifying substances and tropospheric ozone precursor emissions during the period from 1998 to 2008.

Emissions intensity

Examining environmental variables together with economic ones can help identify which economic activity contributes to which environmental pressure and thus be helpful in devising specific policy measures where most needed. In order to make such comparisons it is first necessary to reflect upon the relative importance, in economic terms, of each economic activity. Across the EU-27 in 2008, by far the highest level of value added was generated by the other services and construction sector (which includes both private and public services, other than those concerning transport, storage and communication); it accounted for 71.5 % of the EU-27’s gross value added. Manufacturing activities accounted for 16.5 % of the total, while transport, storage and communication had a 6.9 % share. The economic weight of electricity, gas and water supply (2.4 %) and of the primary activities of agriculture, hunting, forestry and fisheries (1.8 %) and mining and quarrying (0.9 %) was relatively small. More information on the breakdown of economic activity according to these six aggregates may be found in an article on national accounts – GDP.

As shown in Figures 1 to 3, the picture was quite different when considering the relative contributions of each of these six activities to air emissions. The intensity of emissions can be used to measure the extent to which certain economic activities pollute the environment in relation to the economic value that they generate; the indicator is expressed as the ratio of emissions to gross value added and is presented in terms of the emissions produced for each monetary unit of economic output (for example, tonnes of emissions per EUR million of output).

Electricity, gas and water supply had by far the highest intensity of greenhouse gas emissions for the EU-27 among the six economic activities that are covered in Figure 4. This sector generated 7 866 tonnes of carbon dioxide equivalents for each EUR million of added value in 2008, which was almost three times as high as the next most intensive activity, namely agriculture, hunting, forestry and fishing (2 834 tonnes per EUR million). Furthermore, the electricity, gas and water supply sector was the only activity to record an increase in greenhouse gas intensity between 1998 and 2008 (up 1.9 %).

At the other end of the spectrum, the largest reductions in greenhouse gas intensity between 1998 and 2008 were recorded for manufacturing (-26.6 %) and other services and construction (-26.4 %).

While the electricity, gas and water supply sector also had a high level of intensity for EU-27 emissions of acidifying substances in 1998, there was a considerable reduction in its intensity rates during the following ten-year period, as the rate was more than halved from 55.0 tonnes of sulphur dioxide equivalents per EUR million of added value in 1998 to 25.1 tonnes per EUR million by 2008. This rapid change may be largely attributed to a switch from coal-fired to natural gas-fired thermal power plants and the use of industrial scrubbers that reduce emissions of sulphur oxides during energy combustion. As a result of this change, the agriculture, hunting, forestry and fishing sector became the activity with the highest level of intensity for emissions of acidifying substances by 2008 (38.1 tonnes per EUR million).

The intensity of emissions for acidifying substances in the EU-27 fell between 1998 and 2008 for all six of the economic activities covered in Figure 5; the most rapid reductions in intensity were recorded for electricity, gas and water supply (down 54.5 %), manufacturing (-51.1 %), and other services and construction (-42.4 %).

The intensity of tropospheric ozone precursors also fell between 1998 and 2008 for each of the six economic activities covered in Figure 6. Agriculture, hunting, forestry and fishing was the most intensive sector in both 1998 and 2008 for the EU-27, with intensity falling by 21.9 % to 17.5 tonnes of non-methane volatile organic compounds equivalents per EUR million of added value in 2008. This was the smallest reduction in percentage terms, with the intensity of tropospheric ozone precursors falling by more than a third (-36.6 %) for manufacturing and by more than two fifths (-43.8 %) for other services and construction.

It should also be borne in mind that these figures relating to the intensity of tropospheric ozone precursors are national averages and that regional variations could well exist. Indeed, tropospheric ozone precursors may have a pronounced local effect and it is possible for very high concentrations to be recorded at a regional level, especially in urban areas.

Data sources and availability

Air emissions accounts show data on emissions using a breakdown according to the economic activity responsible for producing them. The two main underlying data sources on emissions are two international conventions that govern efforts to reduce the release of polluting substances into the air, namely: the Kyoto Protocol for the United Nations Framework Convention on Climate Change (UNFCCC) concerning greenhouse gases; and the Gothenburg Protocol to the Convention on Long-Range Transboundary Air Pollution (CLRTAP) concerning acidifying substances. The core data from these emission inventories is published and distributed by the European Environment Agency (EEA).

Environmental accounts are subject to EU legislation, namely Regulation (EU) 691/2011 on European environmental economic accounts. The Regulation provides a framework for the development of various types of accounts, initially starting with three modules, with a view to adding other modules as they reach methodological maturity. Air emissions accounts are one of the three modules, alongside modules for material flow accounts and environmental taxes by economic activity. The aim of this legal base is to strengthen the coherence and availability of environmental accounts across the EU by providing a legal framework for their compilation, including methodology, common standards, definitions, classifications and accounting rules. The first regular annual data collection legally required under the Regulation will be in 2013.

In order to produce air emissions accounts, the emissions data are re-organised according to a breakdown by economic activity, as used within national accounts (based on the statistical classification of economic activities, NACE), which makes it possible to have an integrated environmental-economic analysis. The scope for air emissions accounts encompasses all nationally registered businesses (including those operating ships, aircrafts and other transportation equipment in other countries – the residence principle). Emissions are allocated to the economic activity responsible for producing them; unlike national emissions inventories, where the boundary for measuring the extent of emissions is the territorial border. As such, the accounting methodology used within air emissions accounts is not suited for monitoring progress towards internationally agreed emissions reduction targets, such as under the Kyoto Protocol.

The activity groups that are used in this article are constructed as follows:

Agriculture, hunting, forestry and fishing – NACE Rev. 1.1 Sections A and B;
Mining and quarrying – NACE Rev. 1.1 Section C;
Manufacturing – NACE Rev. 1.1 Section D;
Electricity, gas and water supply – NACE Rev. 1.1 Section E;
Transport, storage and communication – NACE Rev. 1.1 Section I;
Other services and construction - NACE Rev. 1.1 Sections F, G, H, J, K, L, M, N, O and Q; as such, this grouping comprises construction, retail and wholesale trade, real estate, renting, financial services, hotels and restaurants, as well as public administration, education, health and social work.

Emissions of individual greenhouse gases and air pollutants may be converted and aggregated to provide information for three environmental pressures: greenhouse gas emissions are typically reported in terms of carbon dioxide equivalents, acidifying emissions in terms of sulphur dioxide equivalents, and ground level ozone precursors in terms of non-methane volatile organic compound equivalents. The use of a common unit allows the relative effect of different gases to be compared and combined – for example, a single kilogram of methane has 21 times the global warming effect of a kilogram of carbon dioxide (see Table 2 for more details on the conversion factors that are employed).

Air emissions accounts present information for three of the six Kyoto Protocol greenhouse gases – carbon dioxide, methane and nitrous oxide; at the time of writing no data are available for perfluorocarbons (PFCs), hydrofluorocarbons (HFCs) or sulphur hexafluoride, as most EU Member States are unable to provide a breakdown of these gases by economic activity.

Context

The need to supplement existing information on the economy with environmental indicators has been recognised in a European Commission Communication titled ‘GDP and beyond’ (COM(2009) 433). Furthermore, similar recommendations have been made within the so-called Stiglitz report, released by the Commission on the Measurement of Economic Performance and Social Progress. The recommendations made support the expansion of the statistical understanding of human well-being by supplementing economic indicators such as GDP with additional information, including physical indicators on the environment.

Environmental accounts are one statistical means to try to measure the interplay between the economy and the environment in order to see whether current production and consumption activities are on a sustainable path of development. Measuring sustainable development is a complex undertaking as it has to incorporate economic, social and environmental indicators without contradiction. The data obtained from environmental accounts may subsequently feed into political decision-making, underpinning policies that target both continued economic growth and sustainable development, for example, initiatives such as the Europe 2020 strategy, which aims to achieve a resource-efficient, low-carbon economy for the EU by 2020.

In order to have such a holistic view of the various aspects of sustainable development, the existing framework for measuring the economy (the system of national accounts) is supplemented by satellite accounts that cover, for example, environmental or social indicators. These satellite accounts are developed using the same concepts, definitions, classifications and accounting rules as the national accounts, bringing environmental or social data together with economic data in a coherent and comparable framework. Thus, environmental accounts serve to enhance the understanding of pressures exerted by the economy on the environment – for example, accounting for the subsequent release of substances (such as air emissions or waste) into the environment as a result of economic activities.

Note that a reduction in one type of environmental pressure can result in an increase in another type of pressure. For example, passenger cars with diesel engines are typically more fuel efficient and therefore tend to produce less carbon dioxide emissions per kilometre travelled. However, if consumers switch to driving diesel cars then (with current engine technology) it is likely that such a switch would be accompanied by an increase in acidifying emissions and ground level ozone precursors.