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Environmental goods and services sector (env_egs)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: STATISTICAL SERVICE OF CYPRUS

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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.

31 October 2024

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 reference period for EGSS data is the calendar year.

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

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).

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.

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 2022, data are estimated using SBS data and external trade data, since the SUT for reference year 2022, 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 2022 for output production for NACE 36 & 37_39.

Data have not yet been disseminated nationally.

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.

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

See 15.2.2