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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: Central Statistical Bureau of Latvia

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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.

24 April 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:
    • 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.

Data are presented at national level. 

The reference period for EGSS data is the calendar year.

Most data is derived directly from National Accounts, or other official statistics. 

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).

We estimate output for each services or product separately, depends on data source.

Business register; (used for estimation of market output for sustainable tourism and sustainable forestry),

Supply -Use tables; used for estimation market output from production of renewable heat and electricity;
General government environmental expenditure by function; nonmarket and market output for Nace 84 (CEP classes)

Structural business statistics. Used for estimation market output from production of renewable heat and electricity, employment data.

Environmental protection expenditure accounts. Ancillary output and market output for Cep classes are taken from EPEA tables.

Agriculture statistics, organic farming-market output CEP0501.

Energy statistics (statistics from surveys “2-EK”, “1-energy”); ancillary output renewable heat and electricity, market output of production of wood fuel, biodiesel CEP0201;

Production statistics (annual survey „1-industry”); market output;
Foreign trade statistics; exports

See concept 8.1

22 month

Data are comparable between geographical areas.

Overall data in time series are calculated based on the same methodology and are comparable. Due to the fact that forest accounts were no longer collected in 2016, which was the basis for calculations of output (Crema 11 for Nace A), starting 2016  those data were estimated as output for Nace 02.01 and 02.40 applying share for forest land with PEFC certificate.