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Belgian Physical Energy Flow Accounts ROAD

Methodology

Lies Janssen, [email protected]

Abstract - ….. This paper presents the methodologies to process the road transport related data needed while contructing the Physical Energy Flow Accounts for Belgium .

Abstract - …..

Abstract - …..

Jel Classification - …, … Keywords - Environmental Economic Accounts, energy Table of contents FPB REPORT – PEFA 2015

1. Introduction

Since PEFA are satellite accounts to the National Accounts, they need to follow the scope, definitions and classifications of ESA2010. This means the PEFA should report on residential energy use and supply and not the territorial energy use and supply which is presented in energy statistics. Moreover, energy statistics regulations allow that not the use of energy over a certain period of time is reported, the energy sold during that period instead. While widely accepted, this practice is in theory not compiant to ESA2010 rules. Therefore in order to compile the PEFA for Belgium an alternative data source for fuel used by road transport is used. This source is the transport model COPERT and is presented in chapter Fuel used: COPERT.

In order to pass from territorial energy use to residential energy use, certain residence principle adjustments are made, which are described in chapter 3.

The PEFA guidelines require energy use from road transport to be allocated to the economic agent responsible for the use. The fuel used data from COPERT combined with the residency principle adjustments deliver the fuel used by the Belgian residents, but those amounts of fuel still have to be allocated to the economic agent responsible for the use. How this is done is explained in chapter Allocation of residential fuel use for road transport.

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2. Fuel used: COPERT

The data on road transport presented in either the regional energy balances or the IEA questionnaires are the physical quantities sold for road transport activity purposes over a certain period of time. In theory, the amounts of fuel sold in one year should be equal to the amounts of fuels used in that year plus the changes in inventories of that year. As such, the data in the energy statistics do not report on the fuel used and the changes in inventories, which is what is reported when looking at the monetary flow of the fuels presented in the Supply and Use tables of the National Accounts. Fuel sold is in general a very good approximation of the amounts of fuel used and should be equal when looking at longer periods, but there are known to be large differences between fuel sold and fuel used for road transport in Belgium. One of the explanations is arbitrage, since fuel prices differ between Belgium and the neighbouring countries. Tank tourism is not the only reason however and work is being done at pinpointing all the underlying reasons.

So for the PEFA another source is used: a specific road transport model which calculates air emissions and fuel uses by road transport. This transport model is COPERT 41 is a software tool used world- wide to calculate air pollutant and greenhouse gas emissions from road transport, but the fuel used per fuel type and vehicle type is also an output of the model. COPERT has been developed for official road transport emission inventory preparation in EEA member countries.

COPERT calculates fuels and emissions related to road transport and since emissions are a regional competence in Belgium, this is done for the three regions. Belgium is considered to be the sum of road fuel used by the three regions. The COPERT output used for the PEFA are the fuel consumption in TJ of 6 different fuel types by 4 types of vehicles. The detail on vehicle classes are not the same for each fuel. If the data is available by COPERT 4, Table 1 indicates an X next to the fuel type.

Table 1 COPERT output of fuel consumption Fuel type Passenger cars Light Duty Vehicles Heavy Duty Vehicles Mopeds and (LDV) (HDV) motorcycles

Diesel X X X Gasoline X X X X Biodiesel X X X Biogasoline X X X X LPG X CNG X X ( but zero)

It is known that there are significant amounts of LDV on LPG and CNG driven by Belgian residents, but COPERT 4 does not provide those categories. According to the model, all LPG and CNG is used by passenger cars. The next version of the transport model - COPERT 5 – is already finished and this

1 The COPERT 4 methodology is part of the EMEP/EEA air pollutant emission inventory guidebook for the calculation of air pollutant emissions and is consistent with the 2006 IPCC Guidelines for the calculation of greenhouse gas emissions. The development of COPERT is coordinated by the European Environment Agency (EEA), in the framework of the activities of the European Topic Centre for Air Pollution and Climate Change Mitigation. The European Commission's Joint Research Centre manages the scientific development of the model. FPB REPORT – PEFA 2015 version will be able to process those categories. However, this new version of COPERT will only be fully implemented in Belgium for the 2018 emissions inventories at the earliest.

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3. Territorial fuel used to residential fuel used

COPERT delivers the fuel consumption per vehicle type and per fuel type used on the territory. As stated earlier, to comply with ESA2010 fuel use by residents is needed. As such, residence principle adjustments are needed.

The Ministry of Mobility has a database which contains the total kilometers driven on Belgian roads, per vehicle type. Another database contains the kilometers driven by Belgian vehicles on Belgian roads. The differences is assumed to be driven by foreigners on the territory. The latter database also contains the total kilometers driven by Belgian vehicles regardless of their geographical presence, which allows to determine the kilometers driven by Belgians on foreign soil. And all the while three types of vehicle types are distinguished: passenger cars, LDV and HDV.

These databases allow to calculate for each of the three types of vehicles a ratio fuel used by Belgian resident vehicles on territory ratio fuel used by foreign vehicles on territory ratio fuel used by Belgian resident vehicles on foreign soil

These ratios can be applied to the territorial fuel use to get total residential fuel use (COPERT output + COPERT output * ratio Belgians on foreign soil – COPERT output * ratio foreigners on Belgian soil).

HDV are rarely fuelled by (bio)gasoline, LPG or GNC. As such, only the ratios of passenger cars and LDV are applied to the COPERT output of those fuels. (Bio)diesel is used to fuel every vehicle type, so all ratios are used for these fuel types.

The use is of electricity for road transport in Belgium still scarce and COPERT 4 has no simulation of the use of electricity. Neither do energy statistics display any electricity sold for road transport. Moreover there is no data available on the kilometers driven and thus the necessary ratios for the residency principle adjustment could not be calculated. By default we use the hypothesis that the amount of this fuel used by residents on foreign soil equals the amount of this fuel type used by non- residents on Belgian soil.

This method does imply using data on fuel used for road transport and not fuel sold, which is reported in the IEA questionnaires. As a result, an extra ‘bridging item’ is needed when bridging to the Eurostat ‘gross domestic energy use’ total. This bridging item will consist of the difference between the fuel used for road transport calculated by the regional transport models and the data on fuel sold as presented in the 5 AQ. FPB REPORT – PEFA 2015

4. Allocation of residential fuel use for road transport

After the residence principle adjustments, there is data on the residential fuel use of diesel, gasoline, biodiesel, biogasoline, LPG and. CNG. Consumption of the first four fuels is split into use by cars, LDV and HDV. For CNG and LPG there is only total road consumption available.

4.1. Diesel & biodiesel

In Belgium, transport diesel can only be put onto the market in a blended form, a mixture of fossil diesel and biodiesel. Therefore, diesel and biodiesel are treated in the exact same way.

The Supply and Use tables (SUT ) of the National Accounts contain a sheet which tells the amount of taxes paid on (blended) transport diesel divided by NACE and households. The level of industry detail is the so-called SUT-branche detail, which has 133 different industries. For the PEFA, an aggregation to the A64 NACE classification detail is made. When calculating the taxes paid by households, the private use of company vehicles is taken into account according to data available from the household accounts.

Based on the amount of taxes paid, an allocation key is calculated to share total residential diesel and biodiesel use over the economic agents. The consumption of (bio)diesel by passenger cars and LDV is allocated to NACE classes and households. The assumption is made that the majority of trucks (HDV) is owned by companies, not households, so the consumption of (bio)diesel from HDV is only allocated to the NACE classes.

Data on taxes are not available for all years, only for 1995-2000-2003-2005-2007 and 2010. The taxes paid in the intermediate years – years when no tax table is available - are intrapolated. For the moment, taxes of 2010 are used for the years 2011, 2012, 2013, 2014.

A better practice might be to have the taxes evolve with the growth rate of the value added of the NACE classes, but the feasibility and effect needs to be checked first.

4.2. Gasoline & biogasoline

Gasoline can also only be offered to the market for road transport in a blended form, fossil gasoline mixed with biogasoline and the latter are allocated using the same method.

The SUT contain the taxes paid on blended gasoline, similar to those on diesel. Gasoline consumption by passenger cars, LDV and HDV is allocated to the NACE classes and households pro rata the taxes paid, much in the same way as described in Gasoline & biogasoline.

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4.3. LPG & CNG

Unfortunately, no specific transport taxes need to be paid on LPG and CNG, meaning taxes cannot be used to allocate those fuels. In the SUT the monetary use of LPG is somewhere in a product also containing butane and propane. CNG is combined with natural gas consumption in general. Neither fuel can be singled out, meaning the SUT are not useful to distribute these fuels.

The only information for these fuels is in the ownership database2. This database contains all vehicles registered in Belgium by type of vehicle (see Table 2) and by ownership. Ownership is either a registered enterprise, in which case the economic classification by NACE of the owner is given, or and individual owner. Among those individual owners, there are independents using the vehicles for their professional activity, but it is impossible to separate them from the household owners. Therefore, it is known the number of vehicles attributed to household owners is larger than in reality.

Table 2 Vehicle types in the ownership database and the relation to the vehicle types used in the PEFA

Car type Ownership database Vehicle class used for PEFA

TR= trekkers – segmented trucks CV= camions – large trucks HDV BC = busses & coaches CT = camionettes – small freight LDV VP= personenwagens – passenger cars Passenger cars MO= moto’s & mopeds

Based on the ownership, an allocation key is calculated for LPG and CNG using the assumption that each vehicle uses the same amount of fuel.

2 http://www.plan.be/databases/data-14-nl-transportdatabanken FPB REPORT – PEFA 2015

5. Conclusion

Following all the steps above, results in residential fuel use per type of fuel by the responsible economic agents. The output is used directly in the PEFA. The described method also allows to calculate the numbers needed for the bridging table. Note that when looking at import export, no distinction is made between intra and extra EU. Luckily that is not obligatory for the Regulation, since the methodology does not allow to make the split.

There are still certain areas where there is room for improvement. Simulating taxes for the years after 2010 (and in the future 2015) is one. Another is getting an estimation on how many vehicles, or vehicle kilometers are driven for professional activities by individual owners.

Last but not least, since the transport model COPERT evolves and the implementation of the new versions of the model arrive bit by bit, it is important to adapt the methodology according the latest developments.

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Annex 1 PEFA energy vector list PEFA-label Energy product group

NATURAL ENERGY INPUTS Non-renewable natural energy inputs Fossil Nuclear Renewable natural energy inputs Biomass for energy use (resource) Hydro power (resource) Other renewable natural energy input Solar based resource Wind power (resource) ENERGY PRODUCTS Hard coal Solid fossil fuels & derivates Brown coal & Peat Solid fossil fuels & derivates Derived gases (= manufactured gases excl. biogas) Solid fossil fuels & derivates Secondary coal products (coke, coal tar, patent fuel, BKB and peat products) Solid fossil fuels & derivates Crude oil, NGL, and other hydrocarbons incl. oil shale/sands (excl. bio) Other petroleum products Natural gas Motor spirit (without bio) Petroleum products Kerosenes & jet fuels (without bio) Petroleum products Naphtha Petroleum products Transport diesel (without bio) Petroleum products Heating and other gasoil (without bio) Petroleum products Residual Fuel Oil Petroleum products Refinery gas, ethane & LPG Petroleum products Other petroleum products incl. additives/oxygenates and refinery feedstocks Petroleum products Nuclear fuel Wood, wood waste & other solid biomass, charcoal Biofuels Liquid biofuels Biofuels Biogas Biofuels Electrical energy Heat ENERGY RESIDUALS Renewable waste Non-renewable waste Energy losses all kinds of (during extraction, distribution, storage and transformation, and dissipative heat from end use) Losses during extraction, distribution, storage Losses during transformation Dissipative heat or end use losses Energy incorporated in products for non-energy use