STATISTICAL SERVICE OF CYPRUS

ENVIRONMENT STATISTICS UNIT

MICHAEL KARAOLIS STR., 1444 NICOSIA

The environmental goods and services sector (EGSS) accounts report on an economic sector that generates goods and services produced for environmental protection or the management of natural resources.

Products for environmental protection prevent, reduce and eliminate pollution or any other degradation of the environment. Examples are electric vehicles, catalysts and filters to decrease pollutant emissions, wastewater and waste treatment services, noise insulation works or restoration of degraded habitats.

Products for resource management safeguard the stock of natural resources against depletion. Examples are renewable energy production, energy-efficient and passive buildings, seawater desalinization or rainwater recovery, and materials recovery.

EGSS accounts provide data on output and export of environmental goods and services and on the value added of and employment in the environmental goods and services sector.

EGSS data are compiled following the statistical concepts and definitions set out in the UN System of Environmental-Economic Accounting 2012 – Central Framework.

Data are reported cross-classified by 1) the type of environmental protection or resource management activity and 2) economic activity. Environmental protection activities are classified by environmental domain as set out in the Classification of Environmental Protection Activities - CEPA. Resource management activities are classified as set out in the Classification of Resource Management Activities - CReMA. see the revised CEPA and CReMA explanatory notes for detail. Economic activity is classified according to the Statistical Classification of Economic Activities in the European Community, Rev. 2 (2008).

EGSS comprises a sector of the economy that produces goods and services aimed at environmental protection and resource management (see SEEA CF 2012 chapter 4). Environmental goods and services either reduce environmental pressures or help maintaining the stock of natural resources or they are designed to be cleaner and more resource efficient than conventional products. Environmental goods and services can be produced by corporations, households, governments and non-profit institutions. The list of environmental activities and products has been set out in the Commission Implementing Regulation (EU) 2015/2174 ('the indicative compendium of environmental goods and services').

EGSS has the same system boundaries as the European System of Accounts (ESA 2010) and consists of all environmental products within this production boundary. ESA defines production as the activity carried out under the control and responsibility of an institutional unit that uses input of labour, capital, goods and services to produce output of goods and services.

Only goods and services produced for environmental purposes are included in the scope of the environmental goods and services sector.

'Environmental purpose' means that a good or service helps either 1) preventing, reducing and eliminating pollution and any other degradation of the environment or 2) preserving and maintaining the stock of natural resources and hence safeguarding against depletion.

The EGSS statistics aim at compiling data for the following economic variables:

Output: consists of products that become available for use outside of the producer unit, any goods and services produced for own final use and goods that remain in the inventories at the end of the period in which they are produced. Apart from market output, output for own final use and non-market output, EGSS statistics also include ancillary output, comprising output intended for use within an enterprise.

Market output is to be valued at basic prices, that is, the prices receivable by the producer from the purchaser minus taxes and plus subsidies on products.
Output for own final use is to be valued at basic prices of similar products sold on the market or by the total costs of production.
Non-market output is to be estimated by the total costs of production.
Ancillary output is measured as a total of recurrent production costs (such as intermediate consumption, compensation of employees and consumption of fixed capital) incurred by enterprises to: 1) reduce environmental pressures arising from their production process or 2) produce environmental goods or services not intended for use outside the enterprise, but instead supporting other (non-environmental) activities undertaken within the enterprise (e.g. waste management services carried out in-house). For market producers, a mark-up for net operating surplus is added to the value of the EGSS ancillary output.
Gross Value Added: represents the contribution made by the production of environmental goods and services to GDP. It is the difference between the value of the output and intermediate consumption.

Employment: is measured in full-time equivalent jobs engaged in the production of output of environmental goods and services. Full-time equivalent is defined as total hours worked divided by the average annual working hours in a full-time job.

Exports: consist of sales, barter, gifts, or grants, of environmental goods and services from residents to non-residents.

Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community describes the different statistical units of the production system.

The recommended statistical unit for the collection and compilation of EGSS statistics (excluding general government) is the establishment. For general government, the recommendation is to use institutional units and groupings of units as defined in the European System of Accounts (ESA 2010).

The statistical population is the national economy as defined in SEEA CF 2012 and the European System of Accounts (ESA 2010). It includes all economic activities undertaken by resident units.

The reference area is the economic territory as defined in SEEA CF 2012 and the European System of Accounts (ESA 2010). A unit is said to be a resident unit of a country when it has its centre of economic interest in the economic territory of that country, that is, when it engages for an extended period (1 year or more) in economic activities in that territory.

The data refer to the calendar years. Data are available for the years 2014-2021, according to the Regulation.

Not applicable.

Output, gross value added, and exports are measured in million units of national currency. Employment is measured in full time equivalents (i.e., full time equivalent jobs).

The reference period for EGSS data is the calendar year.

EGSS accounts are compiled and reported in accordance with Regulation (EU) No. 691/2011 on European environmental economic accounts (EEEA).

The EEEA follow internationally agreed concepts and definitions set out in the SEEA Central Framework (2012), the international statistical standard adopted by the UN Statistical Commission. They present data in a way that is compatible with National Accounts (ESA, 2010).

Not applicable at national level; this information is required at European level only.

Official statistics are released in accordance with the confidentiality provisions laid down in the following:

• Official Statistics Law of 2021 (Law No. 25(I)/2021) (especially Article 16 on protection of confidential data).

• Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and its later amendments (especially Chapter V on statistical confidentiality).

• European Statistics Code of Practice (especially Principle 5 on statistical confidentiality and data protection).

• CYSTAT's Guidelines for the Protection of confidential data. Available only in Greek.

Under the provisions of the Official Statistics Law, all the information collected is treated as confidential and is used solely for statistical purposes. No data for any individual enterprise is published or disclosed to either public bodies or private individuals.

No data is considered confidential at the level published.

There is no schedule of release dates related to EGSS data on the national website. National data are disseminated annually by Eurostat on its database.

Not applicable.

Not applicable.

Data have not yet been disseminated nationally.

There are no news releases set up on a national website.

No publications are available at national level yet.

There are no national databases related to EGSS available yet.

Not requested for this metadata collection.

Not applicable.

Not applicable.

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Not applicable.

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Not applicable.

Statistics are produced in accordance with the provisions of the European Statistics Code of Practice and in line with the principles governing its implementation.
CYSTAT follows guidelines provided by Eurostat on EGSS.

The quality of statistics is assessed according to five quality criteria: relevance, accuracy, timeliness and punctuality, accessibility and clarity, coherence and comparability. CYSTAT endorses the Quality Declaration of the European Statistical System. In addition, CYSTAT is guided by the requirements provided for in Article 11 of the Official Statistics Law of 2021 (Law No. 25(I)/2021) as well as Article 12 of Regulation (EC) No 223/2009 on European statistics, which sets out the quality criteria to be applied in the development, production and dissemination of European statistics.

There have so far been no clear indications to us which could help determine the degree of policy need for this data at national level.

Not applicable.

All data for mandatory variables are reported.

Not requested for this metadata collection.

All estimations are based on the recommendations of the EGSS practical guide and other guidelines provided by Eurostat. 

EGSS accounts are compiled using a range of primary statistical sources. The sampling and non-sampling errors are described in the metadata of the underlying statistical data.

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EGSS accounts are compiled using a range of primary statistical sources. The sampling and non-sampling errors are described in the metadata of the underlying statistical data.

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The first and final estimates for reference year N are available at N+22 months. However, general compilation improvements may be applied later on that could bring revisions of any of the years of the time series.

See 14.1

See 14.1

The data were delivered to Eurostat on 30/10/2023. The reporting deadline for EGSS to Eurostat is 31 October.

Will be calculated and provided by EUROSTAT.

Data on EGSS are compiled according to harmonised guidelines provided by Eurostat and hence are comparable across European countries reporting EGSS data to Eurostat.

Not requested for this metadata collection.

There are some products that are excluded, since there is no sufficient information from National Accounts to identify all environmental products and activities, e.g. environmental consulting services or nature reserve services including wildlife preservation. Moreover the non-availability of PRODCOM data (not produced in Cyprus due to the 1% exemption rule) is a real challenge for data compilation.

There are no products or activities included beyond those mentioned in the indicative compendium.

See 15.2.2

Not applicable; to ensure comparability, this will be calculated and provided by EUROSTAT in the European quality report using a standardised method.

According to the changes in EGSS data collection, "Total EGSS" is reported for the years 2018-2021. However, for the reference year 2018 the "Total EGSS", includes only market production, whereas for reference years 2019 to 2021, non-market, ancillary and own use production are included also in the Total EGSS production.

For CReMA  10, a revision took place for 2018 and 2017 data. We have detected output production  for CReMA 10 in NACE D. There was no revision to data prior to 2017, so there is a trend break from 2016 data backwards.

EGSS data are coherent with other statistics, which are used as source data for the EGSS calculations.

Not applicable, because EGSS data are reported annually.

Even though no official  procedures exist, there is close cooperation with the colleagues from other statistical fields in order to ensure coherence between the various sources and results. EGSS resutls are primarily linked to NA data, since they are the main source of the calculations.

The EPEA accounts are used in the compilation of EGSS and since the same expert is compiling both sets of accounts, it is easier to treat things in a coherent manner. 

Calculations for the variables have the same data sources, as described in the EGSS practical guide.

The cost and burden for the whole process of compiling the EGSS each year is about 450 person/hours. Specifically, it's about 3 months of work for one person who is also attending to other work tasks. Due to the lack of resources, the burden on employees is quite high and disproportional to the demand for the data.

The costs and burden to compile EGSS data are comparable to those of other accounts.

A data revision policy is in place at CYSTAT. It is published on CYSTAT’s website.

EGSS accounts are revised whenever necessary in order to appropriately reflect revisions in the source data. Data revisions are primarily linked to NA data revisions but also to improvements for a better quality or coverage of the data.

For 2023 data reporting, we proceeded to the following revisions.

CREMA13b: 2019-2020 revision in Output, GVA, FTE. Moreover, we used updated information about solar water heaters from industry data for NACE 27.

CEPA 2,3,14,10 revisions in Output, GVA, FTE for both Market and non-market data

CREMA 13A revision of 2020 data.

For non-market data revisions took place for CEPA 3 from NACE 38 to NACE O and for CEPA 6 change from NACE O to NACE A. 

CEPA 4, NACE A 2019-2020: Exports were calculated using the methodology described in the practical guide. However, they looked pretty high. Over the years we have tried to find information about exports of this type of product. Agriculture surveys do not collect this type of information, nor do international trade data. After discussions with the Department of Agriculture, based on their experience and some information they had from the producers, we decided that the exports are negligible and therefore we revised the figures for 2019-2020 and changed the value to zero (very small amount-almost zero).

Not estimated.

Data have been revised since the last obligatory data submission. See 17.2.

Τhe calculations of the data depend to a large extent on the national accounts data, so any revision of these data affects the EGSS reporting.

The main sources for the compilation of EGSS data are: National Accounts, EPEA data, Agriculture statistics, data from Labour Force Survey, Full-time and part-time employment by economic activity, SBS data, Energy statistics.

Output production is used to estimate GVA, employment and part of EGSS exports as described in the practical guide. However,  exports in CREMA 14-NACE 38.3 are provided by National Accounts data. For the reference year 2021, data are estimated using SBS data and external trade data, since the SUT for reference year 2021, was not ready at the time of the compilation of EGSS.

Data from NA/SUT are used for almost all calculations, except for NACE 37-39 for which more detailed data are requested from NA and Industry statistics. SBS data are used for the reference year 2021 for output production for NACE 36 & 37_39.

EPEA data are also used for the calculation of market output for NACE 36, 37_39, ancillary output and non-market output. Data are comparable with SBS data. 

We use Agricultural Statistics for the calculation of output for organic farmimg products, International trade data, Energy data, Labour force survey data for the calculation of EGSS employment.

There is no dedicated survey for EGSS.

No other source of data is used.

Data are collected annually.

Not applicable.

Data reporting follows all recommendations of the EGSS practical guide and other guidelines provided by Eurostat. 

For the compilation of the output, GVA, employment and exports we follow the recommendations given in the EGSS practical guide and other methodological guidelines provided by Eurostat.

Due to limited resources and moreover the non-availability of PRODCOM data (not produced in Cyprus due to the 1% exemption rule), we do not use the share of environmental products/activities in the economic activity. Our calculations mainly depend on NA data and follow the methodology of the Eurostat's practical guide. Estimations are revised on the basis mainly of NA data revisions.

In order to determine the scope of EGSS products and activities, the EGSS operational list is used and our calculations are based on the recommendations of the practical guide provided by Eurostat. When more detailed data are available from other sources, we use them for the calculations.

Not requested for this metadata collection.

For the compilation of output we follow the recommendations given in the EGSS practical guide and other methodological guidelines provided by Eurostat. For market output for NACE 36, 37-39 more detailed data are used from the EPEA survey, SBS and NA data. National accounts provide information on market output and exports for  CPA 37,38,39 and also market production for NACE 36 that is allocated in CREMA 10. Material recovery 38.3 producion is included in CReMA 14. Data are comparable with SBS data. For market production other than wastewater, waste and water management services the guidelines of the practical guide are used.  For the calculation of capital goods and services of heat and energy savings, the methodology of the pactical guide is used. Furthermore, we follow the recommendations of the technical note for reporting the energetic refurbishment and construction of new energy efficient buildings. Data from National Accounts on GFCF in dwellings are used. The majority of the output is allocated under NACE F, CREMA13B. Moreover, a small output production is allocated to other NACE codes (C16_C18, C22_C23, C24-C25, C28 and M71) using ratios from SUT. Non-market output is obtained from Government Finance Statistics detailed accounts.

For the compilation of the GVA we follow the recommendations given in the EGSS practical guide. Output is used as source for the estimations of GVA.

EGSS exports are mainly calculated using national accounts data, where data are broken by product. For the exports of environmental services, mainly 38.3, more detailed data of NA and SBS are used.

For the compilation of the Employment data we follow the recommendations given in the EGSS practical guide. We collect FTE data only for ancillary activities from the Environmental Protection Activities Survey. We used these data for the 2021 reference year. For the rest we use the calculations recommended in the EGSS practical guide, using data from National Accounts aggregates by industry and data from the Labour Force Survey.  

For reference years 2019 to 2021, we reported data for ancillary, non-market and activities for own final use as agrred to the last year's validation report.

For ancillary output data from EPEA were used and adjusted according to the practical quide.  For NACE sections B-E, a dedicated survey is performed for EPEA purposes.

For the breakdown by NACE, we follow the guidelines of Eurostat and is mainly based on the classification of the producer of EGSS goods and activities. However, there are detailed data from NA based on CPA, that we also use.

Data for the construction of new energy-efficient buildings is a very challenging task and given the information and resources available it is very difficult to estimate. Therefore, we used the 20% proposed by Eurostat, even though we believe that this % may be higher, since according to new national regulations all new houses and apartments have to meet energy efficiency prerequisites such as use of double bricks, double glazing, insulation and other measures.

No adjustments are made.

Not requested for this metadata collection.

No further comments.