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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: Statistics Finland

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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.

12 December 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.

Finland

 The reference period for EGSS data is the calendar year.

The compilation system built during the EU grant project along with experts ensures the high level of accuracy. Some coefficients to calcultate EGS shares are uncertain. In addition, the data of statistics on foreign trade of services is also uncertain at some points. We are regularly improving the coefficients with national experts. SUT are also under development to improve the quality.

 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 main sources for EGSS output are national accounts and supply and use tabels.

GVA is calculated using EGSS-shares linked to NACE 2-digit levels and environmental domains (CEPA, CReMA). These shares are calculated during EGSS-output calculation. GVA is calculated multiplying these EGSS-shares with national accounts data.

EGSS exports are compiled mainly from supply and use tables with some help from foreign trade statistics.

For EGSS employment, NA data is used with specific EGSS-coefficients.

Total output, GVA and employment are calculated by using national accounts industry-level data abput the share of market output from total output.

Statistics Finland: National accounts, supply and use tables, SBS, industrial output and input, foreign trade of services, energy statistics. Customs: foreign trade. Natural Resources Institute: agriculture and forestry statistics. Energy Authority: investments in power plants using renewable energy sources. The Housing Finance and Development Centre of Finland: energy saving in new buildings.

The data is disseminated yearly.

The average production time for annual releases is 12 months.

There are products from the indicative compendium in Regulation (EU) 2015/2174 that are not covered or deliberately excluded from EGSS accounts. Products such as lead containers for radioactive waste, maintenace and repair services for reducing water losses, desalinated water and collected rainwater; maintenance of water mains for reducing water losses, R&D services for environmental protection and resource management. Either there are no activities in these fields or there are no reliable data available.

Non-market output for NACE O is only reported for CEPA catergories 1-9. The data is provided by Environmental Protection Expenditure Accounts.

There is a break in time series 2011-2012 as the method for compiling statistics changed and 2012 is the first year compiled with the new method. In the old method EGSS was compiled from data based on survey to enterprises. In the new method, which follows the latest EU regulations, EGSS is compiled from already existing data sources without a survey.

 

The change in the definition of low energy construction was taken into consideration in 2022 data collection, for which reason starting from 2018, the turnover, value added, exports and staff-years of the environmental goods and services sector are lower than previously reported. Before the change in 2018, new buildings belonging to energy efficiency classes A and B in the EU's Energy Performance of Buildings Directive were included in low energy construction. After the renewal, only new buildings belonging to energy efficiency class A are defined as low energy buildings.

 

With the 2024 data update, there is now a break in time series for NACE C from year 2020 onwards. Both paper cardboard made from recycled material (NACE 17) and iron, steel and iron alloys made from recycled material (NACE 24) have been removed since they are out of scope for EGSS.

 

Since 2021, there is no data source for the construction work and building design services related to renewable energy power plants, resulting in break in time series.