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Eurostat, May 2008, Luxembourg Why for the natural resource management field there is no an international agreed accounting system and classification, while for the environmental protection field EPEA and CEPA exist the attempts made so far (e.g. OECD/Eurostat 1999, SEEA2003) in order to fill this gap have led to heterogeneous solutions: CEPA for the environmental protection domain and classifications based on different structure and principles for the resource management domain in Italy there is a great demand of information on environmental expenditure concerning both domains (environmental protection and resource management) especially from Central and Local Government The Istat Classification of Resource Use and Management Activities and expenditure (CRUMA)
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The Istat Classification of Resource Use and Management Activities and expenditure (CRUMA)reference document: C. Ardi – F. Falcitelli “The Classification of Resource Use and Management Activities and expenditure – CRUMA”, Istat, Rome, 2 August 2007 – ENV/EXP/WG/05 (2008) http://circa.europa.eu/Public/irc/dsis/envirmeet/library?l=/environment_20-210508&vm=detailed&sb=Title
Eurostat Working Group “Environmental Expenditure Statistics”Meeting of 20-21 May 2008 - Luxembourg
Federico FalcitelliHead, Economic accounts for the environment
Eurostat, 20-21 May 2008, Luxembourg
Eurostat, 20-21 May 2008, Luxembourg
Summary
• CRUMA Why has been developed How has been developed
Reference points Rationale
Content What it includes What it excludes
Fields of application in Italy An example of figures CRUMA versus other classification
criteria (e.g. COFOG) Who is discussing CRUMA
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
Why
• for the natural resource management field there is no an international agreed accounting system and classification, while for the environmental protection field EPEA and CEPA exist
• the attempts made so far (e.g. OECD/Eurostat 1999, SEEA2003) in order to fill this gap have led to heterogeneous solutions: CEPA for the environmental protection domain and classifications based on different structure and principles for the resource management domain
• in Italy there is a great demand of information on environmental expenditure concerning both domains (environmental protection and resource management) especially from Central and Local Government
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
How, Reference points (1/3)
• Main reference points… SERIEE 1994, Ch. X SEEA 2003, Ch. 5 OECD/Eurostat 1999 manual on
environmental industries• … for
Defining the scope of the natural resource management sector in terms of:
Definition of natural resources Identification of the kinds of resource
management activities
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
How, Reference points (2/3), Scope
• Natural resources (SERIEE 1994 §§ 10043-10045) According to the generally accepted definition, natural assets correspond to non-
produced assets: water (marine and inland), air, land (soil, ecosystems, etc.), wild flora and fauna, sub-soil assets, as well as living assets produced by human activities (livestock, plants).
Restrictions: Only those natural resources corresponding to non-produced natural assets whose use takes the form of goods, are dealt with in the natural resource use and management account. Hence, produced natural resources (livestock, plants) are excluded as well as those environmental services which result from uses of certain functions of natural assets (assimilation of pollutants, aesthetic value, etc.).
• Management activities (SERIEE §§ 10046-10048) For the purpose of the account, management activities designate:
research for new resources, withdrawals from existing resources, activities aimed at reducing withdrawals (recovery, recycling, policies for saving
or substitutes resources), development and regulatory activities for certain resources (e.g. inland waters).
Activities which consist in the transformation of natural resources, i.e. corresponding to their use as input for the production of another product are not described in the account; however activities aimed at lowering their consumption, whether directly or indirectly are considered.
Defining the scope
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
How, Reference points (3/3), List of Natural resources and Kinds of activities
• SERIEE 1994
• SEEA 2003
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
How, Rationale (1/3), Consistency with CEPA
• To set up a classification fully consistent with CEPA in terms of: Classification principles:
main purpose criterion and the technical nature of the activity
The twofold classification criteria of the activities:
by environmental domain and by kind of activity
The method for building the classification: first: to set up a classification matrix, i.e. a [type
of activity] by [environmental domain] matrix second: to fill in the matrix
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
How, Rationale (2/3), CEPA2000 classification matrix: [type of activity] by [environmental domain]
Environmental domain: type of environmental media or pollution-nuisance-degradation
Type of activity Air pollution
(and related climatic risks)
Surface water
pollution
Waste Soil and ground water
pollution, erosion and
other physical
degradation of soil
Noise and
vibration
Degradation of
biodiversity and
landscape
Radiation
Pollution/degradation prevention activities
Pollution/degradation reduction activities
- reduction of emissions and discharges
- reduction of pollution levels and degradation of environmental media
Measurement and control activities
Research and development activities
Teaching and training activities
Administrative activities
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
How, Rationale (3/3), CRUMA classification matrix: [type of activity] by [natural resource]
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Natural resources
Type of activity Inland waters
Natural forest
resources
Wild flora and fauna
Fossil energy
Raw materials
Reduction of the intake of natural resources through preventive in-process modifications
Use of alternative resources
Reduction of losses, leaks and scraps
Reduction of the intake of natural resources indirectly through the reduction of the consumption of natural resource-related products (energy savings, water savings, etc.)
Reuse, recycling
Increase/recharge of natural resource stocks
Direct management of natural resource stocks (mobilization/exploitation, exploration, extraction, treatment, distribution, etc.)
Measurement and control activities
Research and development activities
Teaching and training activities
Administrative activities
Eurostat, 2 October 2007, Luxembourg
Content, What it includes, CRUMA list 1/2
10 Use and management of inland waters10.1 Reduction of the intake 10.2 Reduction of water losses and leaks, water
reuse and savings10.3 Replenishment of water stocks10.4 Direct management of water stocks10.5 Measurement, control, laboratories and the like10.6 Other activities
11 Use and management of natural forest resources
11.1 Reduction of the intake11.2 Reduction of the consumption of forest (wood
and non wood)-related products 11.3 Reforestation and afforestation11.4 Forest fires11.5 Direct management of forest areas (as a
resource and not as a habitat)11.6 Measurement, control, laboratories and the like11.7 Other activities
12 Use and management of wild flora and fauna12.1 Reduction of the intake12.2 Replenishment of wild flora and fauna stocks12.3 Direct management of wild flora and fauna stocks12.4 Measurement, control, laboratories and the like12.5 Other activities
13 Use and management of fossil energy13.1 Reduction of the intake13.2 Reduction of heat and energy losses, and energy
savings13.3 Direct management of the stocks of non-
renewable energy sources13.4 Measurement, control, laboratories and the like13.5 Other activities
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
Content, What it includes, CRUMA list 2/2
14 Use and management of raw materials 14.1 Reduction of the intake14.2 Reduction of raw materials use through the
reduction of scraps and the production and consumption of recycled materials and products
14.3 Direct management of raw material stocks 14.4 Measurement, control, laboratories and the like14.5 Other activities
15 Research and development activities for natural resource use and management
15.1 Inland waters15.2 Natural forest resources15.3 Wild flora and fauna15.4 Fossil energy15.5 Raw materials15.6 Other R&D activities for natural resource use
and management
16. Other natural resource use and management activities
16.1 General administration of natural resources16.1.1 General administration, regulation and
the like16.1.2 Environmental management16.2 Education, training and information16.3 Activities leading to indivisible expenditure16.4 Activities not elsewhere classified
Remarks on 16.1 and 16.2 categories:
If the general administration activities and general education, training and information activities concern both environmental protection and use and management of natural resources, they should be broken down between positions 16.1 and 16.2 and the corresponding CEPA categories ( CEPA 9.1 and 9.2). If this is impossible, they should be classified alternatively in CRUMA categories or in the CEPA ones according to the “main purpose” criterion; if this is impossible as well, they should be classified within the corresponding CEPA categories ( CEPA 9.1 and 9.2)
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
Content, What it excludes
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Natural Hazards(list from SEEA2003, 5.60)
CEPA CRUMA
Forest fires Yes, Class 6 Yes, Class 11
Floods no Yes, Class 10
Avalanches no no
Landslides Yes, Class 4 no
Storms no no
Droughts no no
Earthquakes no no
Volcanic eruptions no no
CRUMA and CEPA exclude Natural risk management activities, with a few exceptions
Eurostat, 20-21 May 2008, Luxembourg
Fields of application in Italy
• A complete RUMEA is currently building for the whole economy for CRUMA 10 - inland waters (no data on ancillary activities)
• The whole CRUMA is applied to the general government; the figures produced are given to the national accounts department for producing data on General Government expenditure by COFOG according to the ESA95 requirements
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
An example of figures: Italian regions (NUTS II), 2005
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
1 - A
ir an
d cl
imat
e
2 - W
aste
wat
er
3 - W
aste
4 - S
oil,
grou
ndw
ater
an
d su
rface
wat
er
5 - N
oise
and
vi
brat
ion
6 - B
iodi
vers
ity a
nd
land
scap
e
7 - R
adia
tion
8 - E
P R
&D
9 - E
P o
ther
10 -
Inla
nd w
ater
s
11 -
Nat
ural
fore
sts
12 -
Wild
flor
a an
d au
na
13 -
Foss
il en
ergy
14 -
Raw
mat
eria
ls
15 -
RU
M R
&D
16 -
RU
M o
ther
Distribution of intermediate consumption + current and capital transfers + gross fixed capital formation
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 2 October 2007, Luxembourg
Correspondences to COFOGSERIEE COFOG
CEPA 2000 (EPEA) … corresponds to …1 protection of ambient air and climate 5.3 Pollution abatement
2 wastewater management 5.2 Waste water management
3 waste management 5.1 Waste management
4 protection and remediation of soil, groundwater and surface water 5.3 Pollution abatement
5 noise and vibration abatement 5.3 Pollution abatement
6 protection of biodiversity and landscapes 5.4 Protection of biodiversity and landscape
7 protection against radiation 5.3 Pollution abatement
8 R&D for environmental protection 5.5 R&D Environmental protection
9 other environmental protection activities 5.6 Environmental protection n.e.c.
CRUMA (RUMEA) … falls in …
10 use and management of inland waters 4.2.16.3.1
Agriculture (irrigation and drainage systems) Water supply
11 use and management of natural forest resources 4.2.2 Forestry
12 use and management of wild flora and fauna 4.2.3 Fishing and hunting
13 use and management of fossil energy 4.3 Fuel and energy
14 use and management of raw materials 4.4.1 Mining of mineral resources other than mineral fuels
15 R&D for natural resource use and management 4.8.24.8.34.8.46.5
R&D Agriculture, forestry, fishing and hunting R&D Fuel and energy R&D Mining, manufacturing and construction R&D Housing and community amenities
16 other natural resource use and management activities no specifc correspondancethe code “4.7.4 - Multi-purpose development projects” can be used for multi purpose activities concerning several RUM activities falling within division 04
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
CRUMA versus other classification criteriaThe Istat Classification of
Resource Use and Management Activities
and expenditure (CRUMA)
Sustainable economic activities(list from OECD/Eurostat 1999)
CEPA CRUMA
Sustainable agriculture Yes, Classes 4, 6 Yes, Class 10
Sustainable fisheries Yes, Class 6 Yes, Class 12
Sustainable forestry Yes, Classes 4, 6 Yes, Class 11
Sustainable transport Yes, Classes 1, 5 Yes Class 13
Eco-tourism Yes, Several classes (1, 2, 3, 6, 9, …)
Yes, Several classes (10, 13, 16, …)
Env. activities classified by economic activity
Env. activities classified by env. domain or nat. res.
The concept of “(environmentally) sustainable” economic activities, used in the OECD/Eurostat classification, cross cuts CEPA and CRUMA categories
Eurostat, 2 October 2007, Luxembourg
Who is discussing CRUMA
• Eurostat Working Group “Environmental Expenditure Statistics” Task Force on EGSS Reflection Group on natural Resource Use and
Management Expenditure Accounts (RUMEA)• London Group
Issue paper on classification of RUM activities and expenditures, with the contribution of the Eurostat Reflection Group on RUMEA
So far the CRUMA has been considered a good starting point to work on with a view to develop a standard classification for RUMEA purposes
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
Eurostat, 20-21 May 2008, Luxembourg
Thank you for the [email protected]
The Istat Classification of Resource Use and
Management Activities and expenditure
(CRUMA)
