Simon Upton Director OECD Environment Directorate

From MFA to SEEA to SMM

Material Sado-Masochism for Beginners

Organisation for Economic Co-operation and Development (OECD) 2

A story of industrial entropy

Increasing cost

Atmosphere

Resource Stocks Reservoirs

Increasing Saturation

Water

Terrestrial

62 Gt

49 Gt of GHG

22 Mt of P

12 Gt of Waste

Source: OECD/IEA data, OECD Materials Report

Organisation for Economic Co-operation and Development (OECD) 3

Planetary accounting level

Global Extraction Used (GEU) =

Global Material Consumption (GMC)

Unused Global Extraction (UGE)

Reusable

• Mining overburden • Harvest residues • Fishery by-catch • Soil erosion from agriculture

Global Extraction Waste

Organisation for Economic Co-operation and Development (OECD) 4

62 Gt of material resources extracted in 2008

8.2 Gt 12.7 Gt 20.3 Gt

30%

50%

90% 90%

70%

50%

10% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Fossil Energy Carriers

Metals Biomass Minerals

Unused Extraction

Used Extraction

20.8 Gt

Source: OECD Material Flow Analysis Data, SERI

Organisation for Economic Co-operation and Development (OECD) 5

National accounting level

Domestic Extraction

Domestic Extraction

Used (DEU)

Waste Unused

Domestic Extraction

(UDE)

Reusable / recycled

Organisation for Economic Co-operation and Development (OECD) 6

Domestic Extraction Used (DEU) 17.1 Gt

Domestic Material Consumption (DMC) 17.8 Gt

But nations trade; from DEU to DMC

Exports 0.4 Gt

Imports 1.1 Gt

Imports 0.08 Gt

Exports 0.7 Gt

Domestic Extraction Used (DEU)

1.6 Gt

Domestic Material Consumption (DMC)

1 Gt

Australia China

Source: OECD computations based on UN COMTRADE data.

Organisation for Economic Co-operation and Development (OECD) 7

Global material resource extraction, 1980-2008

0

10

20

30

40

50

60

70

1980 1990 2000 2008

Billi

ons o

f met

ric to

nnes

(Gt)

Industrial minerals

Wood

Metals

Fossil energy carriers

Construction minerals

Biomass (food & feed)

+49%

+80%

+60%

+133% +19%

-29%

Source: OECD Material Flow database and SERI (Sustainable Europe Research Institute)

Organisation for Economic Co-operation and Development (OECD) 8

Regional shares – all have increased

OECD41%

BRIICS35%

RoW24%

Fossil fuels9.2 billion tonnes

1990 2008

OECD56%BRIICS

26%

RoW18%

Minerals20.8 billion tonnes

OECD72%

BRIICS14%

RoW14%

Minerals14.5 billion tonnes

OECD30%

BRIICS43%

RoW27%

Fossil fuels12.7 billion tonnes

OECD38%

BRIICS29%

RoW33%

Metals4.1 billion tonnes

OECD29%

BRIICS39%

RoW32%

Biomass16.3 billion tonnes

OECD43%

BRIICS33%

RoW24%

Metals8.2 billion tonnes

OECD23%

BRIICS42%

RoW35%

Biomass20.2 billion tonnes

1990 2008

Source: OECD Material Flow database and SERI (Sustainable Europe Research Institute)

Organisation for Economic Co-operation and Development (OECD) 9

Total material exports (direct flows)

0

500

1 000

1 500

2 000

2 500

2000 2008 2009 2000 2008 2009 2000 2008 2009

From OECD From BRIICS From ROW

To ROW

To BRIICS

To OECD

Total material exports, Million tonnes

Source: OECD Material Flow database and SERI (Sustainable Europe Research Institute)

Organisation for Economic Co-operation and Development (OECD) 10

The System of Environmental-Economic Accounting (SEEA) – A framework for measuring interactions between the environment and the economy

Organisation for Economic Co-operation and Development (OECD) 11

SEEA Conceptual Framework

Territory of reference

Environment

Natural Resources (stocks) -Land -Water

-Ecosystems -Soil -Etc.

Natural Resource flows -Materials -Energy -Water

-Ecosystem services -Etc.

Economy

Activities -Production

-Consumption -Accumulation

Instruments -Financial/Monetary

-Taxes/subsidies -Financing -Resource rent -Permits

Actors -Enterprises -Households -Government

-Non-profit institutions

Outside territory of reference

Outside territory of reference

Analytical and Policy Frameworks

-Productivity analysis

-Natural resource management -Climate change

-Green Growth/Green Economy

Land / Resource use / Ecosystems

Emissions / waste

Organisation for Economic Co-operation and Development (OECD) 12

SEEA Conceptual Framework Challenges

SEEA Central Framework was adopted as the international statistical standard in 2012; Efforts are needed to implement it to ensure consistency and comparability of measures. More and improved data are needed on...

stocks and flows of non-energy minerals stocks and flows of waste secondary raw materials better data for MFA including trade

changes in key stocks and flows

land valuation social values of resources

subsidies regulatory instruments

Valuation

Physical side

Policy tools

Organisation for Economic Co-operation and Development (OECD) 13

Global distribution of phosphate rock reserves, 2010

Morocco and Western Sahara

77%

China 6%

Algeria 3%

Syria 3%

South Africa 2%

Jordan 2%

USA 2%

Other countries 5%

Source: U.S. Geological Survey.

Organisation for Economic Co-operation and Development (OECD) 14

Global distribution of rare earth oxides by end-use, 2008

Phosphors 7%

Batteries 9%

Magnets 20%

Metal alloys 9% Glass industry

22%

Ceramics 6%

Catalysts 21%

Other 6%

Source: Adapted from BGS (2010) and Goonan (2011).

Organisation for Economic Co-operation and Development (OECD) 15

Copper mine grades and recoveries

Source: Citigroup (2011)

Organisation for Economic Co-operation and Development (OECD) 16

Energy consumption across the conventional milk production and consumption system

Thank you

From MFA to SEEA to SMM