Definition and delimitation of the Environmental Goods and Services Sector according to the 2009 Eurostat handbook

1. Definition and delimitation of the Environmental Goods and Services Sector according to the 2009 Eurostat handbook Expert Group meeting on International economic and social classifications United Nations Headquarters, New York 1-4 September 2009

2. Summary • Background • Definition and delimitation of EGSS according to the 2009 Eurostat handbook • Definition of EGSS and relationship with the scope of the satellite accounts on environmental expenditure • Delimitation of EGSS, definitions and classifications with specific reference to: • Environmental purposes • Products • Producers • Overview • Concluding remarks

3. Need for an international handbook Background • Strong policy interest in measures targeted to the environmental goods and services sector • need to have good quality, comparable, coherent data on e.g. EGSS’ turn-over, value added, etc., while minimising the burden on national statistical offices • The international guidelines available - “The Environmental Goods & Services Industry. Manual for data collection and analysis” (OECD/Eurostat, 1999) – need to be improved • leave open a number of issues on the definition, classification and identification of the sector • do not deal with all operational aspects • are endorsed within the SEEA2003, which currently is undergoing a revision process with a view to becoming an international statistical standard

4. Eurostat’s initiative for developing the handbook Background • In 2007 Eurostat launched an ad hoc Task Force for developing a handbook on the Environmental Goods and Services Sector - EGSS • The handbook was finalized and was approved in march 2009 by the Eurostat Working Group on Environmental Expenditure statistics • The approach developed by Eurostat was considered by the London Group and is taken into account for the on-going revision of the SEEA

5. The Eurostat handbook Background • Structure of the handbook: • Ch. 1 background information on EGSS • Ch. 2 definition, delimitation and classification of the sector • Ch. 3 guidelines to identify and classify the population • Ch. 4 methodologies for data collection, reporting and analysis • Ch. 5 Standard tables for data collection and process for their compilation • Ch. 6 Recommendations and examples on presentation and interpretation of figures

6. Definition of EGSS Definition • The Environmental Goods and Services Sector consists of a heterogeneous set of producers of technologies, goods and services aimed at: • measuring, controlling, restoring, preventing, treating, minimising, investigating and sensitizing to environmental damages to air, water and soil as well as problems related to waste, noise, biodiversity and landscapes. That includes “cleaner” technologies, goods and services that prevent or minimise pollution. • measuring, controlling, restoring, preventing, minimising, investigating and sensitizing to resource depletion. That mainly results in resource-efficient technologies, goods and services that minimise the use of natural resources.

7. Supply side perspective: EGSS statistics and satellite environmental accounts Definition SUPPLY USE Environmental Goods and Services Sector statistics SEEA and SERIEE satellite accounts (EPEA+RUMEA) EPEA Environmental Protection Expenditure Account Goods Services Goods Services Environmental protection Environmental protection RUMEA Resource Use and Management Expend. Account Goods Services Goods Services Resource use and managament Resource use and management

8. Defining and delimiting the EGSS Definition and delimitation EGSS is defined and delimited by answering three main questions What does it mean “environmental”? Environmental purposes covered Which kind of environmental technologies, goods and services? Products covered Which kind of producers? Producers covered

9. Types of environmental purposes covered Environmental purposes • EGSS includes the provision of environmental technologies, goods and services that respond to two types of environmental purposes: • Environmental Protection (EP): technologies and productssuitable for both preventive and remedial purposes, i.e. for the prevention, reduction, elimination and treatment of air emissions, waste and wastewater, soil and groundwater contamination, noise and vibration as well as radiation, the prevention, reduction and elimination of soil erosion and salinity as well as other kinds of degradation, the preservation of biodiversity and landscapes as well as the monitoring and control of the quality of the environmental media and waste • Resource Management (RM): technologies and products suitable for managing and/or conserving the stock of natural resources against depletion phenomena, including both preventive and restoration activities as well as the monitoring and control of the levels and uses of natural resource stocks. • remark 1: in both cases EGSS includes • Administative activities, education, training, information and communication activities • Research and development activities • remark 2:EGSS’ output is for every kind of use, i.e. intermediate and final consumption as well as gross capital formation

10. Activities not included in EGSS Environmental purposes • Not included in EGSS: • Activities related to natural hazards and natural risk management (nevertheless, e.g. the protection of soil against erosion for reducing the risk of landslides and floods are included, given the primary aim of protecting the soil) • Extraction, exploitation and mobilisation of non-renewable resources (Resource Use - RU)

11. What is crucial is the “main purpose” Environmental purposes

12. Types of environmental products Products

13. Kinds of producers Producers

14. Environmental purposes and classifications to be used Classification

15. CReMA (Classification of Resource Management Activities) Classification • 10: Management of waters • 11: Management of forest resources • 11 A: Management of non-cultivated forest areas • 11 B: Minimisation of the intake of forest resources • 12: Management of wild flora and fauna • 13: Management of energy resources • 13 A: Production of energy from renewable sources • 13 B: Heat/Energy saving and management • 13 C: Minimisation of the intake of fossil resources as raw material for other use than energy production • 14: Management of minerals • 15: Research and development • 16: Other natural Resource Management activities

16. Summary of main concepts Overview

17. Definition and delimitation of EGSS: major achievements Concluding remarks • The EGSS concept according to the 2009 Eurostat handbook is consistent with the one developed within the 1999 OECD/Eurostat guidelines • As concerns definition and classification issues, the main “value added” of the 2009 Eurostat handbook is represented by having: • enhanced the consistency with the internationally agreed satellite accounting systems SEEA and SERIEE • provided an improved classification for resource management activities (less developed in the 1999 guidelines, leading to overlapping with CEPA) • clarified a number of issues left opened in the 1999 guidelines (e.g. concerning cleaner goods and technologies) • made the definition and delimitation of the sector more operational, by providing the users of the handbook with practical instructions

18. Questions to the Expert Group • What is your opinion on the criteria to delimitate the EGSS?

19. Thank you for your attention