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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 Portugal

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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.

PT - Portugal

The reference period for EGSS data is the calendar year.

Accuracy of data reported is ensured by:
- a thorough selection of the EGSS account's universe (environmental goods and services KAU, and the respective NACE and products to consider);
- the use of the same micro data as for the NA and consistency checks with NA totals (Output by product and NACE; GVA by product and NACE, checks with COFOG data); Employment by NACE and Exports by product and NACE;
- the use of environmental coefficients from several data sources such as annual specific surveys and consistency checks between output and exports data.

In the past exercises, PT suggested that the EGSS Handbook guidance should be revised regarding the use of only one CEPA/CReMA classification by KAU; in fact, the annual surveys ISBSA to the environmental activities detail the share of the unit activity in each CEPA/CReMA areas and, possibly, that splitting is more accurate.
In the 2023 and 2024 EGSS Data Compilations this splitting was used. It is considered that data was much improved regarding the accuracy of environmental domains.

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

The compilation of EGSS data was made by institutional sector (S.11+S.14 - Non-financial corporations + Households, S.13 - General government and S.15 - Non-profit institutions serving households) using micro data by KAU, with the same treatment as for the NA.

PT EGSS account follows a bottom-up approach, compiling microdata from single producer units or KAU using ESA 2010 concepts. A coefficient for the environmental share is applied by KAU that produces partially environmental products and determined, case by case, using several sources and proxies:
• KAU with response to dedicated survey ISBSA: the answers obtained allow to evaluate the output share of the KAU activities related to the environment (environmental coefficients) and in which environmental domain(s). Although the Eurostat guidelines (Handbook and Practical guide) indicate that only one domain per entity should be assigned, PT consulted Eurostat in 2019, which agreed with the distribution by several environmental domains, as the PT specific survey ISBSA contains that reach information (and in fact, many units of activity act in several domains, for example, CEPAs 2 and 3, or CEPA 2 and CReMA 10, or in CEPA 3 and CReMAs 11B, 13C and 14);
• KAU of the Higher Education system with degrees in environmental areas: a previous selection was made of the higher education courses (undergraduate, masters and doctorates) that were unequivocally related to the environment, from the REBIDES database, of the Directorate-General for Education and Science Statistics (DGEEC) and its teaching institutions were incorporated into the EGSS accounts universe. Once the "environmental degrees" were identified, DGEEC provided Statistics Portugal with the number of hours taught by teachers in these degrees, from the R&D survey. The environment coefficients were calculated using as a proxy the proportion of hours taught by teachers in environmental degrees, in the total hours taught at the institution;
• KAU with R&D activities in environmental areas: the KAUs with R&D projects in environmental areas are identified in the IPCTN (R&D survey) database through a specific question related to the share of environmental activities. The environmental coefficients are calculated using the proportion of R&D expenditure in environmental areas in total R&D expenditures as a proxy;
• KAU from NACE activity 01 - Agriculture, livestock, hunting, forestry and fishing: the environmental coefficients were calculated using the percentage of Utilised agricultural area (UAA) in organic farming from the 2013 Agricultural Census (for 2014 and 2015 compilation), from the Farm Structure Survey (FSS) for 2016 (for the 2016 to 2018 compilation) and from the 2019 Agricultural Census (for 2019 compilation);
• KAU with exports of environmental products: a cross-reference was made between entities collected from the NA database with the entities with environmental goods and services from the International trade database for goods and BoP. Missing entities in the universe have been added. Exports of environmental products by KAU allowed to design a proxy for the calculation of the environmental coefficient for the exporting KAU. Exports were calculated by KAU and compared with its total production: (1) in cases where exports were higher than the output, the initial output figure was replaced by the export's figure and coefficient 1 was attributed; (2) in those cases where exports were less than the production, it was considered that at least this value would be produced to satisfy exports and the coefficient was the ratio between the export of environmental products and the total KAU production.
The remaining partially environmental KAU, for which it was not possible to determine an environmental coefficient, were assigned with a zero coefficient.

The 2024 Data Collection covers 2020, 2021 and 2022 and was updated: 1) by the adoption of NA benchmark year 2021; 2) by the adoption of the Indicative Compendium List, 2024, and 3) by the inclusion of NZEB buildings since 2021.

National Accounts are the main data source, complemented by other administrative sources and surveys, as mentioned in detail in the answers ahead. In this time series (2020-2022) data was updated using National Accounts with 2021 as benchmark year, while in the last exercise (2023) data was based on National Accounts with 2016 as benchmark year.

Yearly

22 months

Yes

No. Break in series in 2020 and 2021.