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Environmental goods and services sector (env_egss)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: ISTAT - NATIONAL STATISTICAL INSTITUTE

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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.

In addition, the data contain information on investments for climate change mitigation (CCM). Those investments aim at reducing the emission of greenhouse gases either by source or enhancing the removal from the atmosphere.

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

31 October 2025

Environmental Goods and Service Sector:

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.

Investments for climate change mitigation:

The reporting covers the capital expenditure to reduce the emissions of greenhouse gases (GHG) by source  or enhance their removal from the atmosphere by sinks.

Capital expenditure includes: 

  • For activities and products covered by the CEP:
    • Gross fixed capital formation (GFCF – ESA 2010 code: P51g) for climate change mitigation related characteristic activities (i.e. GFCF for the production of specific services related to climate change mitigation)
    • GFCF in specific and cleaner and resource efficient goods related to climate change mitigation, unless they are already included in GFCF by CCM (characteristic) activities
    • and final consumption (ESA 2010 code: P3) in specific and cleaner and resource efficient goods related to climate change mitigation.
  • For activities and products relevant for CCM but outside the scope of CEP (not included in the Italian 2025 data reporting):
    • GFCF for the production of nuclear energy and for R&D related to nuclear energy
    • GFCF for the transmission and distribution of energy, in particular electricity
    • GFCF for the production of low carbon transport activities
    • GFCF in transport infrastructure for low carbon transport activities.

 Where:

  • GFCF for climate change mitigation characteristic activities is broken down by corporations, government and households together with non-profit institutions serving households (NPISH).
  • GFCF for specific and cleaner and resource efficient goods, mitigating climate change, is broken down by corporations, government and households together with NPISH.
  • final consumption of specific and cleaner and resource efficient goods, mitigating climate change, is broken down by government and households together with NPISH.

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 data collection and compilation of private corporations is the establishment. For general government, households and NPISH, 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.

Italy

The reference period for EGSS and CCM data is the calendar year.

Validation procedures and plausibility checks are mostly based on the comparison of EGSS and CCM estimates with broader national accounts aggregates, ensuring the overall quality of the data reported.

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

See section below

Main sources used for EGSS variable MARKET OUTPUT are:

  • National accounts - agriculture
  • National accounts - supply tables
  • National accounts - use tables
  • National accounts - gross fixed capital formation
  • Istat surveys on Economic and financial accounts of enterprises - current expenditure for environmental protection; sections other than environmental protection expenditure: investments, expenditure for repair and maintenance, other
  • PRODCOM Statistics
  • Physical Energy Flow Accounts (PEFA)
  • Vehicles inspection register
  • Eco-Management and Audit Scheme (EMAS) certification register
  • Students enrolled in University courses
  • Individual companies' financial, economic and environmental accounts
  • Industrial Associations of producers of equipment for energy production from renewable sources - reports
  • Gestore Servizi Energetici (GSE) - Statistics
  • Census of Non profit institutions
  • Data on Nzeb built (ENEA)
  • National accounts - costs of construction of buildings
  • Ad hoc survey on noise abatement 

Main sources used for EGSS variable OUTPUT (other than market) are:

  • General Government expenditure by function - detailed working level data; General Government accounts - detailed working level data (non market output);
  • Ad hoc survey on General Government vehicles inspection (non market output);
  • Financial and economic accounts of individual Institutes/Agencies;
  • Survey on Economic and financial accounts of large enterprises data and on Small and Medium Enterprises (ancillary environmental protection output);
  • Physical Energy Flow Accounts (PEFA) (own account output - renewable energy)
  • Ad hoc survey on noise abatement (ancillary output)
  • Main sources used for EGSS variable of which EXPORTS are: national accounts export data by product
  • Main sources used for EGSS variable VALUE ADDED  are: national accounts value added data by economic activity
  • Main sources used for EGSS variable EMPLOYMENT  are: national accounts data on FTE

Main sources used for EGSS variable CCM INVESTMENTS are:

  • For activities and products covered by the CEP:
    • Gross fixed capital formation (GFCF – ESA 2010 code: P51g) for climate change mitigation related characteristic activities (i.e. GFCF for the production of specific services related to climate change mitigation): national accounts GFCF matrices
    • GFCF and final consumption (ESA 2010 code: P3)  in specific and cleaner and resource efficient goods related to climate change mitigation: 
      • Egss output and export data for individual CCM products together wih national accounts GFCF and households' consumption matrices.
      • specific data sources on investments in technologies for the production of renewable energy

Activities and products relevant for CCM but outside the scope of CEP are not included in the Italian data reporting in 2025.

Annual

First EGSS and CCM estimates are available 22 months after the reference period

Very few products from the indicative compendium in Regulation (EU) 2015/2174 are not covered from the Italian EGSS account. See section 12.3.

No products or activities beyond those mentioned in the indicative compendium are included in the Italian EGSS account.

The calculation process does not cause break in time series.