Paolo Cagnoli - Arpa Emilia-Romagna

1. a Decision Support System for Regional Sustainable Development

2. What is NAMEA? NAMEA is a National Accounting Matrix including Environmental Accounts derived by Leontief (1970) and developed by Statistics Netherlands (CBS) in the 1990s recognised of top priority by EC; Communication COM (94) 670, standardised by Eurostat �NAMEA for air emissions � Compilation Guide� developed at regional level (RAMEA; 2004) three main aims: monitoring, benchmarking, forecasting, in terms of environmental & economic performances One of the potential tools are the so called National Accounting Matrix with Environmental Accounts, or NAMEA. NAMEA�s methodology goes back to the analysis of physical economy by Nobel Laureate Wassily Leontief in the 70s, who firstly combined input-output modelling and environmental accounts. The term NAMEA was developed in the 90�s by Statistics Netherlands (CBS - Centraal Bureau voor de Statistiek), in particular with the work of Steven Keuning and Mark de Haan. Dutch NAMEA was first released as a pilot in 1993, as a National Accounting Matrix (NAM) extended with environmental accounts (EA). In 1994 the European Union recognised the importance of the integration of environmental and economic information systems (the so-called �satellite approach�). Following EU Communication, in 1995 Eurostat started working on NAMEA accounts, regarding them as one of the satellite accounts with top priority at European and International level: NAMEA system has been standardised with a compilation Guide by Eurostat itself. NAMEA now is a statistical information system that gives the possibility to analyse the pressures placed on the environment by production and consumption activities, extending the economic aggregates (value added, output, consumption) with related environmental indicators (global warming potential, acidification, eutrophication, ozone layer depletion, waste, land use): a matrix scheme which allows studying the economy-environment interrelationship with the robustness offered by statistical data. to inform the public and policy-makers about the status quo of the environmental assets and environmental pollution to organize and analyse economic and environmental data in relation to policy objectives. to analyse the pressures placed on the environment by production (industries) and consumption (household) activities extends the economic aggregates (monetary) with related environmental indicators (physical) allows studying the economy-environment interrelationship with the robustness offered by statistical data to inform the public and policy-makers about the status quo of the environmental assets and pollution to organize and analyse economic and environmental data in relation to the policy objectives. One of the potential tools are the so called National Accounting Matrix with Environmental Accounts, or NAMEA. NAMEA�s methodology goes back to the analysis of physical economy by Nobel Laureate Wassily Leontief in the 70s, who firstly combined input-output modelling and environmental accounts. The term NAMEA was developed in the 90�s by Statistics Netherlands (CBS - Centraal Bureau voor de Statistiek), in particular with the work of Steven Keuning and Mark de Haan. Dutch NAMEA was first released as a pilot in 1993, as a National Accounting Matrix (NAM) extended with environmental accounts (EA). In 1994 the European Union recognised the importance of the integration of environmental and economic information systems (the so-called �satellite approach�). Following EU Communication, in 1995 Eurostat started working on NAMEA accounts, regarding them as one of the satellite accounts with top priority at European and International level: NAMEA system has been standardised with a compilation Guide by Eurostat itself. NAMEA now is a statistical information system that gives the possibility to analyse the pressures placed on the environment by production and consumption activities, extending the economic aggregates (value added, output, consumption) with related environmental indicators (global warming potential, acidification, eutrophication, ozone layer depletion, waste, land use): a matrix scheme which allows studying the economy-environment interrelationship with the robustness offered by statistical data. to inform the public and policy-makers about the status quo of the environmental assets and environmental pollution to organize and analyse economic and environmental data in relation to policy objectives. to analyse the pressures placed on the environment by production (industries) and consumption (household) activities extends the economic aggregates (monetary) with related environmental indicators (physical) allows studying the economy-environment interrelationship with the robustness offered by statistical data to inform the public and policy-makers about the status quo of the environmental assets and pollution to organize and analyse economic and environmental data in relation to the policy objectives.

3. NAMEA simplified scheme Let�s see the NAMEA simplified scheme, as described in Eurostat Compilation Guide We have an economic part (a NAM � National Accounts Matrix) extended with an environmental part (EA � Environmental Accounts) Different type of data are consistently organised, to highlight contributions of industries and households to both economic and environmental performances of the economic system analysed. Each production/consumption activity is directly linked with the environmental pressures generated to support the activity itself: as an example we could see the relative contribution of Energy sector to Value Added (or Output, or Employment) and the GHG emissions (or waste, or water consumption) needed to perform the energy production. As I said before, NAMEA framework maintains a strict border between economic and environmental aspects (the last appearing as �environmental requirements� of the economy): because environmental accounts are not related with market transactions, they are not assigned a monetary value and no modelling assumption is needed to estimate monetary value of environmental assets. So, NAM in monetary units and EA in physical units (ton for example) Apart from air emissions, which is the most advanced sector, it is possible to extend the EA module in order to include a wide range of environmental pressures: energy accounts, water extractions and discharges, polluting releases to water, production of solid waste, land use and environmental taxes. The final step could be to incorporate social aspects into the economic-environment framework, realising the fullest form of a NAMEA: SAMEA or �Social Accounting Matrix Including Environmental Accounts�.Let�s see the NAMEA simplified scheme, as described in Eurostat Compilation Guide We have an economic part (a NAM � National Accounts Matrix) extended with an environmental part (EA � Environmental Accounts) Different type of data are consistently organised, to highlight contributions of industries and households to both economic and environmental performances of the economic system analysed. Each production/consumption activity is directly linked with the environmental pressures generated to support the activity itself: as an example we could see the relative contribution of Energy sector to Value Added (or Output, or Employment) and the GHG emissions (or waste, or water consumption) needed to perform the energy production. As I said before, NAMEA framework maintains a strict border between economic and environmental aspects (the last appearing as �environmental requirements� of the economy): because environmental accounts are not related with market transactions, they are not assigned a monetary value and no modelling assumption is needed to estimate monetary value of environmental assets. So, NAM in monetary units and EA in physical units (ton for example) Apart from air emissions, which is the most advanced sector, it is possible to extend the EA module in order to include a wide range of environmental pressures: energy accounts, water extractions and discharges, polluting releases to water, production of solid waste, land use and environmental taxes. The final step could be to incorporate social aspects into the economic-environment framework, realising the fullest form of a NAMEA: SAMEA or �Social Accounting Matrix Including Environmental Accounts�.

4. Where we can find NAMEA applications? An online survey about international applications of NAMEA, lead to the results that most of the EU countries have compiled it at national level, often with good time series (see the green countries); some extra EU experiences exist (in particular in Japan, South Korea and Brazil), even if not always the term NAMEA is used. The regional application of the methodology (see the blue countries), which is the focus of RAMEA project, is not so explored. Country NAMEA Regional NAMEA Austria 1999-2003 Belgium 1995-2002 Brazil 2004 Bulgaria 2001-2003 Denmark 1995-2003 Estonia 2003 France 1995-2003 Germany 1995-2003 Hungary 2000-2003 Ireland 1995-2003 Italy 1995-2003 1995, 2000, 2003 Japan 2001-2006 2004-2006 Norway 1995-2003 Poland 1995-2003 2003 Portugal 1995-2003 Slovenia 2000-2003 South Korea 1995-2000 Spain 1995-2003 Sweden 1995-2003 Switzerland 2002 The Netherlands 1995-2003 2001-2003 United Kingdom 1995-2003 2003An online survey about international applications of NAMEA, lead to the results that most of the EU countries have compiled it at national level, often with good time series (see the green countries); some extra EU experiences exist (in particular in Japan, South Korea and Brazil), even if not always the term NAMEA is used. The regional application of the methodology (see the blue countries), which is the focus of RAMEA project, is not so explored. Country NAMEA Regional NAMEA Austria 1999-2003 Belgium 1995-2002 Brazil 2004 Bulgaria 2001-2003 Denmark 1995-2003 Estonia 2003 France 1995-2003 Germany 1995-2003 Hungary 2000-2003 Ireland 1995-2003 Italy 1995-2003 1995, 2000, 2003 Japan 2001-2006 2004-2006 Norway 1995-2003 Poland 1995-2003 2003 Portugal 1995-2003 Slovenia 2000-2003 South Korea 1995-2000 Spain 1995-2003 Sweden 1995-2003 Switzerland 2002 The Netherlands 1995-2003 2001-2003 United Kingdom 1995-2003 2003

5. Examples of NAMEA

6. What is RAMEA? Interreg IIIC GROW project; 4 regions: Emilia-Romagna (IT) Malopolska (PL) Noord-Brabant (NL) South-East England (UK) Pillars: coherency with NAMEA tools official statistics data internationally standardized systems RAMEA is an EU co-funded project started in may 2006 by 7 institutes with the objective of develop four Regional NAMEA (RAMEA) in the four partner regions: Emilia-Romagna (IT), Malopolska (PL), Noord-Brabant (NL), South East (UK) The tools developed are based on reliable data by official statistical accounts, international accepted methodology (UN, Eurostat) and standardized systems (System of Economic and Environmental Accounting - SEEA 2003, SNA 1993, ESA 1995). These conditions assure their coherency with similar tools at national level (NAMEA) RAMEA has been thought as a tool to support regional policies in SD issues, in particular to understand economic-environmental performances of regions, together with a benchmarking exercise and to inform regional policies/strategies about Sustainable Development EU Commission and Eurostat reaction to the project was enthusiastic: RAMEA could be a good practice for EU regions and project leader, ARPA (the Environment Agency of Emilia-Romagna Region I�m representing) is invited to EU Open Days 2008 (www.opendays.europa.eu) to present the results of the project� so you�re invited as well and you can find all the info on www.opendays.europa.eu. (the European Week of Regions and Cities OPEN DAYS have become an unmissable event where regions and cities have demonstrated how they can create growth and jobs by getting the very best results from applying the European Union�s cohesion policy). And now, I�m pleased to introduce you Elisa from University of Bologna, who will show you the second part of the presentation, with some examples of activities carried out during the project, in particular for our region, Emilia-Romagna (in Italy). Thank you, Elisa. RAMEA is an EU co-funded project started in may 2006 by 7 institutes with the objective of develop four Regional NAMEA (RAMEA) in the four partner regions: Emilia-Romagna (IT), Malopolska (PL), Noord-Brabant (NL), South East (UK) The tools developed are based on reliable data by official statistical accounts, international accepted methodology (UN, Eurostat) and standardized systems (System of Economic and Environmental Accounting - SEEA 2003, SNA 1993, ESA 1995). These conditions assure their coherency with similar tools at national level (NAMEA) RAMEA has been thought as a tool to support regional policies in SD issues, in particular to understand economic-environmental performances of regions, together with a benchmarking exercise and to inform regional policies/strategies about Sustainable Development EU Commission and Eurostat reaction to the project was enthusiastic: RAMEA could be a good practice for EU regions and project leader, ARPA (the Environment Agency of Emilia-Romagna Region I�m representing) is invited to EU Open Days 2008 (www.opendays.europa.eu) to present the results of the project� so you�re invited as well and you can find all the info on www.opendays.europa.eu. (the European Week of Regions and Cities OPEN DAYS have become an unmissable event where regions and cities have demonstrated how they can create growth and jobs by getting the very best results from applying the European Union�s cohesion policy). And now, I�m pleased to introduce you Elisa from University of Bologna, who will show you the second part of the presentation, with some examples of activities carried out during the project, in particular for our region, Emilia-Romagna (in Italy). Thank you, Elisa.

7. Simplified RAMEA in Emilia-Romagna(e.g. 2000, values in %) 3 years: 1995, 2000, 2003 33 economic sectors (30 industries + 3 households) Output, GVA, Final Consumption, Employment 21 air emissions (GHG, Acidification, Local Air quality) Input/Output tables Manufacturing (D) is the sector with the higher contribution to the regional output (39.6%) and the second for the employment (27.4%), but has also a high impact on the environment (GHG 31.5%, acidification 21.2% and PM 31.3%); Electricity sector (E) makes a very little contribution to the regional output and value added (1.5% and 1.3% respectively) and employment (0.5%) but makes a significant environmental impact in terms of GHG (14.3%) and acidification (10.2%); We produced 3 matrices (1995 and 2000, 2003), using: regional economic data supplied by IRPET (Institute for Economic Planning of Toscana Italian Region) for 30 economic sectors plus 3 types of household consumptions official database of 21 pollutant air emissions at provincial level supplied by ISPRE (National Environment Agency). Manufacturing (D) is the sector with the higher contribution to the regional output (39.6%) and the second for the employment (27.4%), but has also a high impact on the environment (GHG 31.5%, acidification 21.2% and PM 31.3%); Electricity sector (E) makes a very little contribution to the regional output and value added (1.5% and 1.3% respectively) and employment (0.5%) but makes a significant environmental impact in terms of GHG (14.3%) and acidification (10.2%); We produced 3 matrices (1995 and 2000, 2003), using: regional economic data supplied by IRPET (Institute for Economic Planning of Toscana Italian Region) for 30 economic sectors plus 3 types of household consumptions official database of 21 pollutant air emissions at provincial level supplied by ISPRE (National Environment Agency).

8. Key sectors and �hot spots� In this chart we can see the contribution of sectors and households to both the economy and the environment (%) and the regional hot spots: priority economic sectors generating significant environmental pressures. How much costs the importance of a sector in the economy in terms of emissions? Manufacturing (D) is the sector with the higher contribution to the regional output (39.6%) but has also a high impact on the environment (GHG 31.5%, acidification 21.2% and PM 31.3%); Agriculture and fishing (A+B) sector makes little contribution to the regional output (2.6%) and value added (3.5%), but is relatively important in term of GHG (12.2%) and PM (24.2%) and is the highest for acidification (47%); Households have an impact on environment that can not be overlooked, particularly for emissions such as CO2 In this chart we can see the contribution of sectors and households to both the economy and the environment (%) and the regional hot spots: priority economic sectors generating significant environmental pressures. How much costs the importance of a sector in the economy in terms of emissions? Manufacturing (D) is the sector with the higher contribution to the regional output (39.6%) but has also a high impact on the environment (GHG 31.5%, acidification 21.2% and PM 31.3%); Agriculture and fishing (A+B) sector makes little contribution to the regional output (2.6%) and value added (3.5%), but is relatively important in term of GHG (12.2%) and PM (24.2%) and is the highest for acidification (47%); Households have an impact on environment that can not be overlooked, particularly for emissions such as CO2

9. Intensity of emissions of GHG: X = Emissions / Value Added X = Emissions / Output [Mt CO2eq. / M EUR] Indicatori measure of efficiency in terms of emissions Indicatori measure of efficiency in terms of emissions

10. RAMEA to benchmark GHG intensity of emission (2003)

11. CO2/Output in Emilia-Romagna

12. RAMEA to estimate baseline scenarios of action plans (households CO2 emissions in South East England)

13. 13 RAMEA opportunities for the future Use existing RAMEA for environmental assessment: Regional state of the �sustainable-development� reports Strategic Environmental Assessment of Plans and Programmes Allocation of European Structural Funds Awareness of strengths and weaknesses of regions Complete RAMEA with new themes: water consumption, waste & wastewater production, etc. environmental pressure indices (i.e. Ecological-footprint) exploring the potential for adding social themes

14. a Decision Support System for Regional Sustainable Development