Between 2006 and 2007, the quantity of natural resources used by the UK economy, known as domestic material consumption, rose by 3 million tonnes (0.4 per cent) to 683 million tonnes. This slight rise is driven by higher levels of imports not being fully offset by falling levels of domestic extraction. Over the same period the economy has grown by 3.0 per cent in real terms.
Demand for fossil fuels fell by 2.9 per cent between 2006 and 2007. Year on year demand for biomass also fell over the same period, showing a 2.3 per cent reduction while demand for minerals rose by 4.3 per cent reflecting higher rates of imports and domestic extraction. However, over the last ten years resource use remains broadly unchanged, despite rising levels of economic activity.
Imports of natural resources rose for a fifth consecutive year to a record 296 million tonnes in 2007, up 4 million tonnes (1.4 per cent) on the previous year. The rate of increase in the mass of imports has decreased this year compared with the preceding year. The rise this year is due to the increasing levels of minerals and other products imported. Imports of fossil fuels fell for the first time since 2002 by 1.4 per cent, while imports of biomass held steady at 50 million tonnes.
Exports of natural resources fell 1 million tonnes (0.6 per cent) to 173 million tonnes due to fewer exports of fossil fuels, which were down 3.6 per cent from 83 million tonnes in 2006 to 80 million tonnes in 2007. In 2006, the mass of exports was at its lowest level since 1995/96.
The net effect of higher imports and lower exports is to increase the physical trade balance by 6 million tonnes (5.1 per cent) to 123 million tonnes in 2007. However, the rise in the deficit on the physical trade balance is partly offset by falling levels of domestic extraction.
Domestic extraction declined slightly by 3 million tonnes (0.5 per cent) to 560 million tonnes, the lowest level recorded since 1970, largely due to lower levels of fossil fuel extraction. Although extraction biomass fell 3.1 per cent following lower levels of agricultural harvest, extraction of minerals rose by 3.1 per cent between 2006 and 2007. Over the same period, fossil fuel extraction fell 9 million tonnes (5.1 per cent) to 166 million tonnes, its lowest level since 1974. UK fossil fuel extraction comprise; North Sea oil, which rose 1 million tonnes (1.3 per cent) to 77 million tonnes, natural gas, which fell 8 million tonnes (10.0 per cent) to 72 million tonnes and coal which fell 2 million tonnes (10.5 per cent) to 17 million tonnes.
Physical trade balance = mass of imports - mass of exports
For more information about material flows, please refer to: Economic Trends article UK Material Flow Accounting, 1970 – 2000 Economic Trends article Trends in UK Material Flows between 1970 – 2003 UK Material Flows review
The Environmental accounts provide data on the environmental impact of UK economic activity and the use of the environment by the economy.
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Environmental Accounts