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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: Statistics Sweden

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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 questionaire inlucdes data 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:
    • 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.

Sweden

The reference period for EGSS data is the calendar year.

By continuous updates of both population and classification in data as well as revision of time series and by quality checks. For every year we prioritize a number of improvements in methodology. In many industries, a combined approach has been developed for the environmental sector regarding reporting years 2023 and 2024. Previously there was only an activity approach, but now a product approach is also used. This means that companies that produce a number of environmental products are included even if they do not belong to a specific industry. Moreover, in the data collection 2023 we revised the polulation in NACE C16, D and others. 

There is possibly lower quality data in certain industries that are borderline cases on whether they produce environmental goods and services as a main function as well as those that may fall into multiple CEP categories. We are continuously working on improving the microdata that we use. 

Certain CEP categories remain that are more difficult to determine than others. Moreover, some CEP codes are empty today. These are ongoing quality improvement for all reporting countries. We make adjustments as we discover quality issues and these are identified during yearly checks before reporting of such statistics.

From reporting year 2023 an accomplished EU Grants project has resulted in new methodology for estimation of EGSS in NACE A01, A02 and F as well as new estimates on export in the named sectors. 

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).

For the output values and market data, the data source is output from SBS which is aligned with National Accounts data. Except for NACE A01, A02 and NACE F where data is collected directly from NA. 

For GVA values and market data, the data source is value added from SBS which is aligned with National Accounts data. Except for NACE A01, A02 and NACE F where data is collected directly from NA. 

For exports, foreign trade registry on business level is used. We have a business identification number we can match data with. All products exported from an EGSS business is included. Except for NACE A01 and A02 where we use NA data (environmental share output in NACE A02 is multiplied with export from NA SU tables) and for NACE F where exports is put to zero after our research work in EU Grants project 2021-2023.

For employment, SBS and Labour statistics based on administrative sources are used. This is matched with the environmental population by local unit or with a macro model (NACE A01, A02, F). 

For the EGSS share, in some cases we use information from energy statistics by company. In some cases we have macro model applied based on available information in e.g. forest industry or in construction industry. We also use information from the Statistical Business Register that have detailed information on NACE codes for each working unit and the share of each economic actitivity, for example a working unit can have 50 percent economic activity in NACE 38 and the rest in something else outside the EGSS scope, and then the environmental share is 0,5. This environmental share is applied to all EGSS variables (output, GVA, employment and export). 

Environmental Goods and Service Sector:

The Swedish EGSS is mainly based on the business population from the Statistical Business register. The main sources for identifying the population are by NACE codes. In some NACE codes all activities are included (NACE 37-39), while in others businesses are handpicked depending on their main acitivty (NACE C, O, P, M, G, H, I, K, L, N, Q, R, S, T, U ). After identifiying the EGSS population, a CEP category is allocated to every object in the population. This is mainly done automatically by connecting each NACE to a specific CEP (e.g. för NACE 37-39). In addition, some adjustments are made.

For NACE A01, A02 and 03 we include environmentally certified businesses. For A01 we estimate values based on NA data in combination with organic production in agriculture in the designated NACE branches in EGSS list of environmental products and activities and they are allocated to CEP 0501. For A02, forest, we estimate values based on NA data in combination with certified forests and allocate NACE 02.1 and 02.4 to CEP 0503 and NACE 02.2 is allocated to CEP 0201 (based on fuel wood from EFA).

For NACE D we include all energy producers (businesses) that produce renewable energy based on energy data. We only include the renewable energy share of each business. This is allocated to CEP 0201.

For NACE F we use NA data in combination with information on construction of NZEBs from Swedish National Board of Housing, Building and Planning. This is allocated to CEP 0202. 

CCM Investments:

Households
The data comes from ESST where subsidies from general government to households have been selected. The subsidies for CEP 01 concerns purchases of electric vehicles and the total subsidies that´s been paid to households for these types of investments cover between 15 - 20 percent of the car´s total price (we have thereby counted with a medium of 17%). The households are thereby required to pay the remaining 85 - 80 percent (approximately 82,5%) of the investment. These 82,5 percent are the values that´s been reported for households in CCM - CAPEX - FC at row 17. We have chosen to report the values as "final consumption and GFCF in products" and not as "GFCF for characteristic activities" since the investments are directly linked to purchases of products (electric vehicles). We are aware that sector S14_S15 includes both households and NPISH but we do not have data concerning NPISH´s investments in electric vehicles and so row 17 only covers households.  
The data reported for households for CEP 0201 concerns purchases of solar panels. The data comes from ESST and the total subsidies that´s been paid to households for these investments cover between 15 and 20 percent depending on the year. It covered 20 percent during 2020 and 2023, and 15 percent during 2021 and 2022. The remaining 80-85 percent of the investment is taken from the households´ own spending. These 80-85 percent are the ones reported in the questionnaire. It is reported as GFCF for (characteristic) activities since "final consumption and GFCF in products" are marked as black (not applicable) in the questionnaire. We asked Eurostat is we interpreted it correctly by reporting the solar panel investments as GFCF for (characteristic) activities and Eurostat said yes.
CEP 0402 are assumed to be zero for households since households typically don't invest in materials recovery and savings in Sweden. 

Data reported in CEP 020202 (Energy efficient buildings) is based on estimated share of residential NZEB buildings in combination with NA data on output value. This is reported as 'Final consumption and GFCF in products' for households.

General government
CEP 01 (products): The data comes from ESST where subsidies from general government to households have been selected. The subsidies for CEP 01 concerns purchases of electric vehicles which only goes to the sector HH and not to any other sector. It is reported as GFCF in products, and not as GFCF for (characteristic) activities, after discussion with Eurostat. 
The data reported for general government for CEP 0201 concerns purchases of solar panels. The data comes from ESST and the total subsidies that´s been paid to households and corporations from the general government is the data that is reported in the questionnaire. It is reported as GFCF for (characteristic) activities, and not as GFCF for products, after discussion with Eurostat. 
Data for CEP 01, 0501, 0502, 07 and 08 (GFCF for characteristic activities) are taken from EPEA. The values reported are taken from the variable “P51G_NP” in the EPEA questionnaire as it measured GFCF and acquisition less disposals of non-financial non-produced assets. The data for CEP 01 is not double counted even though we use data from both EPEA and ESST as the data from EPEA is reported for GFCF activities and data from ESST is reported for GFCF in products for this CEP-category.

Due to a delay in the data collection process, data from EPEA for 2023 is missing. 

Corporations

GFCF for (characteristic) activities:

Data for CEP 01, 0201, 0202, 0402, 0501 and 08 is gathered from company data on GFCF of companies in the EGSS population. The full EGSS population however includes both producers of CEP characteristic activities as well as producers of specific and cleaner/resource efficient goods. Since CCM investments, according to the guidance material, does not include GFCF for the production of specific and cleaner/resource efficient goods, efforts have been made to exclude producers of specific and cleaner/resource efficient goods from the population used for estimating GFCF for (characteristic) activities. The correct population was primarily chosen based on the NACE codes provided in Table 3 in Guidelines for data collection on climate 
change mitigation investments. The delineation between producers of characteristic activities and 'products' primarily results in an exclusion of many corporations operating in manufacturing (NACE C). 

The use of EGSS data uninevetably leads to some loss in coverge since the database is manually updated for activities that are not automatically included in the scope of EGSS based on their reported activity. For example, we were not able to identify businesses in the EGSS data working with carbon capture activities in NACE E39. Furthermore, we were unable to identify CCM characteristic activities for CEP 0502, 0503 and 07. 

Data for CEP 0503 (050301) is based on SNA data on GFCF in 'Plant resources yielding repeat products' (P.51g) for the forestry and logging industry (NACE 02) , also reported in EFA (table B1). 

GFCF in products:

Data for CEP 01 and CEP 0202 for NACE B-E is taken from EPEA and these are reported as GFCF in products. The data is taken from the variable “Integrated investments in environmental protection” (INV_IT) which measures preventive investments in environmental protection. The same footnotes as the ones in EPEA are reported for CCM in EGSS concerning these data. Data for 0202 is taken from the voluntary part of the survey in EPEA which covers investments in energy savings and heat recovery. 

Yearly

T+20 months.

No issues in geografical comparabilty have been detected since the microdatabase used in EGSS covers all regions in Sweden for the entire timeseries.  

As for the latest revisions and data/method changes concerning reference years 2021 and 2022, mentioned under section 17, the comparability of the time series are affected. This should be considered when comparing latter data with years preceding reference year 2021.