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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: Federal Statistical Office of Germany (Statistisches Bundesamt)

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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.

25 November 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 an activity carried out under the control, responsibility and management of an institutional unit that uses inputs of labour, capital and goods and services to produce outputs 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.

Germany

The reference period for EGSS data is the calendar year.

 

Best practice methods are applied to improve the EGSS survey methodology. The focus is on delineating the set of surveyed entities: New products are considered, others are assessed as state of the art and excluded. In addition, new information on potentially environmental producers is taken into account.

Results for gross value added, and for economic activities not covered by the EGSS survey are estimates based on additional data sources. They are as accurate as possible but they might not be as accurate as the survey results.


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

Establishments participating in the annual EGSS survey are asked to report environmental turnover and environmental exports differentiated by environmental goods and services, according to a list of goods and services attached to the survey´s questionnaire. Each of these goods and services is related to an environmental domain, and every establishment is assigned to a specific economic activity (NACE Rev. 2). Environmental employment, by contrast, is reported in toto by the establishments. It is attributed to environmental domains based on the share of turnover (by economic activity and environmental domain). Gross value added, on the other hand, is not part of the annual EGSS survey. In the case of the economic activities covered by the survey, it is assumed that the gross value added to output ratios of environmental and non-environmental producers are identical. The relevant ratios are calculated using structural business statistics data.

For certain economic activities, estimation methods have been developed (see above, point 18.1). Data sources and the exact procedures vary from economic activity to economic activity. However, the estimates are mainly based on supply side data.

The main data source for the variables output, exports and employment is the annual EGSS survey. Establishments report environmental turnover and exports by environmental domain (CEPA 1 to 6, 8 and 9, CReMA 13 and 15). Environmental employment, by contrast, is reported in toto by the establishments. It is attributed to environmental domains based on the share of turnover (by NACE and environmental domain).

Gross value added is not reported in the survey on EGSS. For this reason, all results for gross value added are estimates based on additional data sources. In the case of the economic activities covered by the survey, it is assumed that the gross value added to output ratios of environmental and non-environmental producers are identical. The relevant ratios are calculated using structural business statistics data. In the other cases, data sources and estimation procedures depend on the economic activity under consideration.

For certain economic activities, estimation methods have been developed:
- Organic agriculture (NACE A / CEPA 4),
- sustainable management of forest areas (NACE A / CReMA 11A),
- production of fuel wood (NACE A / CReMA 13A),
- management of water (NACE C, E, F and M / CReMA 10),
- waste and waste water management and materials recovery (NACE D and E / CEPA 2, 3 and 4 and CReMA 14),
- production of biofuels (NACE C / CReMA 13A),
- renewable electricity production (NACE C and D / CReMA 13A),
- renewable heat production (various NACE sections / CReMA 13A) and
- non-market environmental protection activities (NACE O and P / various CEPA classes).

The annual EGSS survey addresses establishments that produce goods and services for environmental protection and (albeit selectively) resource management. The survey covers establishments in all sectors of the economy, with the exception of NACE A and (as of reference year 2017) NACE 37 to 39. In 2017, cut-off thresholds were introduced: Since reference year 2016, establishments in NACE B to F with less than 20 employees and establishments in NACE G to U with a total annual turnover of less than 1 million euros have not been included in the survey.

Annually

Final survey results for environmental turnover, environmental exports and environmental employment are available at t+18. Results for gross value added, and for economic activities not covered by the survey are based on data available no later than t+21. 

See points 15.1.1 to 15.1.3 below.

Breaks in the series are due to the dynamics surrounding environmental activities: New products are considered, others are assessed as state of the art and excluded. In addition, the set of surveyed entities is annually extended based on new information on potentially environmental producers.

In 2015, the national legislation extended the survey to include all economic activities except for agriculture.

For reference year 2019, data in connection with electromobility in the domain of CEPA 1 "Protection of ambient air and climate" were collected for the first time.

For reference year 2020, data of the sections 8.1.2 "R&D for the protection of climate and ozone layer” (as a subgroup of R&D for environmental protection) and 15.5.1 "R&D for the production of energy from renewable sources” (as a subgroup of R&D for resource management) were collected for the first time.

Beginning with reference year 2020, the German statistics have redefined and differentiated the reports on "improvement of the energy efficiency of buildings". They now include the energy refurbishment of existing buildings (e.g. measures that result in an improvement in the efficiency class of at least KfW efficiency house standard 115) and the construction of new efficiency houses (e.g. construction of efficiency, passive and plus energy houses with KfW efficiency house standard 55, 40, 40 Plus or better).

In 2024, estimation procedures for economic activities not covered by the national EGSS survey were thoroughly reviewed and in part substantially modified. There is a break in the series as the new procedures are only applied from reference year 2022 onwards. Furthermore, prior to reference year 2022, the data do not include fuel wood production, and non-market environmental protection activities are essentially not included in the data.