Environmental Goods and Services Sector

1. Environmental Goods and Services Sector Sacha Baud Directorate Spatial Statistics Vienna 22 - 24 October 2014

2. Political needs and applications (I) In the 1990s (and up to present time) the economic opportunities related to environmental protection moved into the centre of interest. Important political initiatives are: • Europe 2020 • Reduction of greenhouse gas emissions by 20% • 20% share of renewable energy • Increase of energy efficiency by 20% • 6th Environmental Action Plan • EU biodiversity strategy to 2020 • Road map to a resource efficient Europe

3. Political needs and applications (II) • Road map for moving to a low-carbon economy in 2050 • 7th Environmental Action Plan • These and further political initiatives supported the development of the so called ‘green economy’ in the past and still do it. • This increased focus on the environment also affected the European Statistical System as it is responsible for the provision of data to measure the efficiency of these political activities. For this purpose the ESS developed new statistical products concerning the environment and its interaction with the economy (the society).

4. Political needs and applications (III) In 1995 OECD and Eurostat proposed the collection of information on the Environment Industry as part of the SERIEE system. Economy ResourceUseand Management Accounts Environmental ProtectionExpenditure Accounts Collectingandprocessingofbasicdata: e.g. Environment Industry Environment In 1999 publicationofthejoint OECD/Eurostat „The Environmental goods and services industry – Manual for data collection and analysis“. Definition:The environment industry consists of activities which produce goods and services to measure, prevent, limit or correct environmental damage to water, air and soil as well as problems related to waste, noise and eco-systems.

5. Political needs and applications (IV) Between 2006 and 2009 a Eurostat task force developed the EGSS methodology which resulted in an improved data collection of integrated technologies and clean goods and in an inclusion of resource management activities. Eurostat data collection handbook “The Environmental Goods and Services Sector” Since 2012 the EGSS methodology is a worldwide standard as part of the System of Environmental-Economic Accounting (SEEA), volume I Central Framework. • The EGSS is one of the modules of the Regulation (EU) No 538/2014 of the European Parliament and of the Council of 16 April 2014 amending Regulation (EU) No 691/2011 on European environmental economic accounts. • Obligatoryreporting to Eurostat: • First reference year 2015 (including data for 2014) • First reporting year 2017

6. Political needs and applications (V) EGSS in the context of SERIEE SERIEE consists of three pillars: • Environmental Protection Expenditure Accounts • Resource Use and Management Accounts • Intermediate systems for collecting and processing of basic data: These systems shall provide the data for compiling EPEA. Focus is on the output of the environment industry – EGSS. Economy ResourceUseand Management Accounts Environmental ProtectionExpenditure Accounts Collectingandprocessingofbasicdata: e.g. Environment Industry Environment

7. Political needs and applications (VI) Therefore, definitions and classifications of EGSS have to be consistent with SERIEE and thereby with EPEA, Resource Use Accounts (RUA) and Resource Management Expenditure Accounts (ReMEA). This condition allows for a multiple use of data sources. However, EPEA, RUA, ReMEA and EGSS are focused on environmental activities from different perspectives so there are important differences that have to be taken into account, e.g. if data sources for EPEA are also used for EGSS.

8. Questions?

9. Definition andscopeof EGSS andofgreenjobs (I) TheEGSS - Environmental Goods and Services Sectorconsists of a heterogeneous set of producers of technologies, goods and services that: • Measure, control, restore, prevent, treat, minimise, research and sensitise environmental damagesto air, water and soil as well as problems related to waste, noise, biodiversity and landscapes. This includes “cleaner” technologies, goods and services that prevent or minimise pollution. • Measure, control, restore, prevent, minimise, research and sensitise resource depletion. This results mainly in resource-efficient technologies, goods and services that minimise the use of natural resources. These technologies, goodsandservices must satisfytheend orprimarypurposecriterion, whichis in thiscaseenvironmental protectionorresourcemanagement. Technologies, goodsandserviceswhichhave a favourableimpact on theenvironment but anothermainpurposeare NOT INCLUDED in EGSS.

10. Definition andscopeof EGSS andofgreenjobs (II) Both EP and RM also comprise administrative activities, education, training, informationandcommunicationactivities, researchanddevelopment. Environmental protection(EP) includes preventive and remedial technologies and products: • to prevent, reduce, eliminate and treat air emissions, waste and wastewater, soil and groundwater contamination, radiation, noise and vibration, • to prevent, reduce and eliminate soil erosion, salinity and other kinds of degradation, to preserve biodiversity and landscapes, and • to monitor and control the quality of environmental media and waste. Resource management (RM) includes technologies and products: • to manage and/or conserve the stock of natural resources against depletion, including preventive and restoration activities, • to monitor and control the levels and uses of natural resources stocks.

11. Definition andscopeof EGSS andofgreenjobs (III) The Environmental Sector comprises: • Environmental technologies, goods and services for every kind of use (intermediate or final consumption, gross fixed capital formation) • Only EGS, which are produced for the environment (“main purpose criterion”) • EGS produced by corporations and the general government • EGS produced as principal, secondary or ancillary activity • Market and non market activities

12. Definition andscopeof EGSS andofgreenjobs (IV) end-of-pipetechnologies connectedproducts env. spec. services integratedtechnologies adaptedgoods connectedservices EGSS (handbook) ancillaryactivities

13. Definition andscopeof EGSS andofgreenjobs (V) Environmental technologies are technical processes, installations and equipment (goods), methods or knowledge (services) whose technical nature or purpose is EP or RM. There are two types: • End-of-pipe technologies are mainly technical installations and equipment which operate independently or are identifiable parts at the end of production or consumption cycles.They are used to measure, control, treat and restore or correct pollution, environmental degradation and resource depletion. Examples: Wastewater or waste treatment facilities, filters, equipment to recover materials. • Integrated technologies are less polluting and resource intensive than the equivalent average technology in a given country. They comprise technical processes, methods or knowledge used in production processes. • Examples: Wind turbines, combined heat and power, solar panels, dry ovens in the cement industry.

14. Definition andscopeof EGSS andofgreenjobs (VI) Connected products (goods or services) are not the output of characteristic EP or RM activities but their use directly serves an EP or RM objective (the use must be exclusively for that objective), e.g. catalytic converters, rubbish containers, noise reduction windows, EP maintenance services for septic tanks. Adapted goods are less polluting or more resource efficient than equivalent normal products which furnish a similar utility. Their primary use is not EP or RM (in EPEA only extra costs are considered, in EGSS overall costs), • e.g. Organic agricultural products, cars with lower emissions, recycled paper, water-saving devices, renew. heat a. energy, resource-efficient appliances. Environmental specific services are the “characteristic” environmental protection or resource management activities. Their purpose is EP or RM, • e.g. waste management or wastewater management activities, energy and water-saving activities, activities to reduce water leaks and water losses, RM services such as installation of renewable energy production technologies.

15. Definition andscopeof EGSS andofgreenjobs (VII) • The Practical guide towards compiling Environmental Goods and Services Sector (EGSS) statistics recommends to review some of the definitions of environmental products. • Environmental specific (“characteristic”) services should be extended to characteristic goods such as energy from renewable sources. The name of this new category would be environmental specific (or “characteristic”) products. • b)The definition of adapted goods for environmental protection should be broadened to also include goods that are cleaner when produced. • c)Concerning the category adapted goods the practical guide also acknowledges that there could be some cleaner or resource efficient services, too.

16. Definition andscopeof EGSS andofgreenjobs (VIII) plus goods cleaner whenproduced; plus cleaner orresourceefficientservices Source: Handbook on Environmental Goodsand Services Sector (Eurostat 2009)

17. Definition andscopeof EGSS andofgreenjobs (IX) Overviewof environmental goodsandservices (accord. tothepractialguide) End-of-pipetechnology: Operates independently or is an identifiable part at the end of a production or consumption cycle. Pressure on the environment already occurred. Integrated technology: Less polluting and less resource intensive than the equivalent average technology in a given country. Connectedproducts: Are not the output of characteristic EP or RM activities but their use directly serves an EP or RM objective. Adaptedproducts: More environmental-friendlyor less polluting when produced, used or scrapped or more resource efficient when used than equivalent normal products with a similar utility. Their primary use is not EP or RM. Environmental specific products: Characteristic environmental protection or resource management goods and services (activities). Their purpose is EP or RM.

18. Definition andscopeof EGSS andofgreenjobs (X) In theframeworkoftheEurostat EGSS questionnairethefollowingdatashallbedelivered: • Output (turnover in EGSS handbook) • Exports • Gross valueadded • Employment

19. Definition andscopeof EGSS andofgreenjobs (XI) Howtoidentifyproducersandactivitiesbelongingto EGSS? • Onlytheproducerofthe final environmental technology, goodorservice (= mainproducer) istakenintoaccount. • Suppliersofcomponentswhichare not usedexclusively in environmental technologiesareexcludedfrom EGSS. • Distributors of environmental technologiesandgoodsare also not partof EGSS (exceptfor G 46.77 wholesaleofwasteandscrap; onlyprocessingactivities). • Installation activitiesarepartof EGSS asproducersofconnectedservices, iftheyarespecialised in theinstallationof environmental technologiesandproducts. • Constructionactivitiescanbepartof EGSS, e.g. constructionof passive/energy-efficienthouses, constructionofwastewatertreatmentfacilities.

20. Definition andscopeof EGSS andofgreenjobs (XII) Producers Corporations General GovernmentandNPIsH Principal Secon-dary Ancillary Market Non-market Market Non-market Market Non-market Non-market Source: Based on EGSS handbook, page 40

21. Definition andscopeof EGSS andofgreenjobs (XIII) Categoriesof environmental producers • Specialistproducers:Theyproducegoodsandservicesfor EP and RM asprincipalactivity. Twosubcategoriescanbedistinguished: • GovernmentspecialistproducersandthoseoftheNPIsHsector: Theyare non-marketproducersandprovidetheir environmental productsforfreeor at economicallyinsignificantpricestootherunits. • Other specialistproducers: Theyaremarketproducerswhichprovidetheir environmental products at economicallysignificantpricestootherunits. • Non-specialistproducers: Theyproducegoodsandservicesfor EP and RM assecondaryorancillaryactivity. • Own-accountproducers: Theyproducegoodsandservicesfor EP and RM forownaccountonly (=ancillaryactivities).

22. Definition andscopeof EGSS andofgreenjobs (XIV) The General Government (GG) consists of central, regional and local governments, authorities, communities and government agencies carrying out activities relating to administration, planning, legislation, supervision, control, information etc. General Government provides environmental services more or less free of charge (= non-market services), e.g. regulatory, administrative or control activities related to EP or RM. • Government-owned entities (like public corporations) carrying out market or non- marked activities, e.g. waste and wastewater treatment services, are excluded from general government sector (in EPEA they are called GG specialised producers). • They have to be classified in those NACE rev. 2-digits which typically carry out these activities, e.g. wastewater treatment services in NACE E37, waste treatment in NACE E38.

23. Definition andscopeof EGSS andofgreenjobs (XV) • Data on corporations should be collected on the LKAU level (local kind of activity unit = establishment in SNA). It is the smallest unit of a corporation with book- keeping. • If the environmental activity of a corporation is not the primary but secondary activity it should be allocated to the NACE category of the establishment and not of the corporation. Corporations can carry out market and non market activities. Market activities are sold on the market at economically significant prices, i.e. 50 percent or more of the production costs are covered by the price. Non-market activities are provided free of charge or at economically insignificant prices (less than 50 percent).

24. Definition andscopeof EGSS andofgreenjobs (XVI) The principal activity is the activity of a unit producing most of the gross value added. If no gross value added data are available other key figures must be used to determine the most important activity, e.g. employment or turnover. In the case of a non-market producer the principal activity is responsible for most of the costs of production. Secondaryactivities are all other activities of a unit provided for use by other units. Ancillary activities are technologies and goods where the producer is also the beneficiary, i.e. they are not provided for use by other units but to support the main productive activities of the own unit, e.g. autoproduction of renewable energy (deviation of NACE rev. 2 rules), in-house waste collection and treatment, in-house wastewater treatment plants, education and training and other general administration. Problems related to the categorisation of environmental products and environmental producers will be addressed later in this course.

25. Data transmissionto Eurostat

26. Questions?

27. Classifications (I) The followingclassificationsarecrucial in relationto EGSS: • Classificationof Environmental ProtectionActivities (CEPA) • ClassificationofResource Management Activities (CReMA) • Statistical Classificationof Products byActivity (CPA) • Community Production (Prodcom) • CombinedNomenclature (CN) • ClassificationoftheFunctionsofGovernment (COFOG) • Statistical ClassificationofEconomicActivities (NACE)

28. Classifications (II) Classificationof Environmental ProtectionActivities (CEPA): • Protectionofambientairandclimate • 1.1.2 of which for the protection of climate and ozone layer • Wastewatermanagement • Wastemanagement • Protectionandremediationofsoil, groundwaterandsurfacewater • Noise andvibrationabatement • Protectionofbiodiversityandlandscape • Protectionagainstradiation • Research anddevelopment • 8.1.2 R&D for the protection of climate and ozone layer • Other environmental protectionactivities • Due tothe legal base, thequestionnaireismoreaggregated.

29. Classifications (III) ClassificationofResource Management Activities (CReMA): • Management ofwaters • Management offorestresources • 11 A. Management offorestareas • 11 B. Minimisationoftheintakeofforestresources • Management of wild floraandfauna • Management ofenergyresources • 13 A. Productionofenergyfromrenewablesources • 13 B. Heat/energysavingandmanagement • 13 C. Minimisationoftheintakeof fossil resourcesasraw material forusesotherthanenergyproduction • Management ofminerals • Research and Development • 15.5.1 R&D for the production of energy from renewable sources • Other naturalresourcemanagementactivities • Due tothe legal base, thequestionnaireismoreaggregated.

30. Classifications (IV) Statistical Classificationof Products byActivity (CPA): As alreadyexplainedthefocusof EGSS is on the (main) producersof environmental goods, technologiesandservices. These productscanbeidentifiedusingthe CPA. CPA iscompatiblewith NACE, therefore environmental G-T-S canbeallocatedtotheproducingeconomicunit (ifpossible LKAU/establishment). But CPA is on 6-digitlevelandtherefore in manycasestooimprecise. Eurostat provides a listof environmental G-T-S based on CPA. Community Production (Prodcom): Like CPA Prodcomis a classificationofproductsandbotharecompatible. The advantageofProdcomisthatitismoredetailedthan CPA. On EU levelproductsareclassifiedby8-digitcodes, on national levelby10-digitcodes.

31. Classifications (V) CombinedNomenclature (CN) The CN isusedfortheclassificationofgoods in international trade. Itisbased on 8-digit codeswhichcanbelinkedtootherclassifications (productsoreconomicactivities) via correspondencetables. This classificationcanbeusedtoidentifyexportsof environmental G-T-S. But asitisthecasefor CPA andProdcom, only a partofexported environmental G-T-S canbeidentifieddirectly. A furtherproblemisthattherearethresholdsforreportingobligations. So, furtherdatasourcesareneeded, e.g. surveysortelephoneinterviewsaskingfortheshareof environmental exports in total output.

32. Classifications (VI) ClassificationoftheFunctionsofGovernment (COFOG): COFOG canbeusedas a datasourcefor General Governmentactivities. Take onlydata on costsofproduction, noemploymentdata. General publicservices Defence Public orderandsafety Economicaffairs Environment protection Housingandcommunityamenities Health Recreation, cultureandreligion Education Socialprotection

33. Classifications (VII) ClassificationoftheFunctionsofGovernment (COFOG): 5. Environment protection 5.1 Wastemanagement 5.2 Wastewatermanagement 5.3 Pollution abatement 5.4 Protectionofbiodiversityandlandscape 5.5 R&D Environment Protection 5.6 Environment protectionn.e.c. = CEPA 3, allocationto NACE 38 = CEPA 2, allocationto NACE 37 = CEPA?, allocation? = CEPA 6, allocation? = CEPA 8, allocationto NACE 72 = CEPA?, allocation? Even thoughmostofgovernmental environmental expenditureisclassifiedunder COFOG 5 therecouldbethatsome environmental expenditureisclassifiedunder an another COFOG division. This shouldbechecked.

34. Classifications (VIII) Statistical ClassificationofEconomicActivities (NACE): The producersof environmental G-T-S areclassifiedby NACE. The allocationshouldbedone on thelevelof LKAU/establishment. Itcandifferfromtheenterpriseclassification.

35. Classifications (IX) Problems andconventionsrelatedtoclassifications The different classificationsmentioned on thepreviousslidesservespecificpurposesandthereforethey do not always fit withtheclassificationsof environmental activitiesusedfor EGSS statistics.

36. Classifications (X) • Problems andconventionsrelatedtoclassifications • 1. Delimitationproblems in CEPA andCReMA • Itisoftendifficulttoassignevery environmental protectionactivitytoonlyone CEPAdomain. • Furthermoretherearedelimitationproblemsbetween EP and RM activitiessinceactivitiesmayserve multiple purposes, e.g. theproductionofrenewableenergy, theincinerationofwaste, material recoveryandcertainactivitiesconcerningprotectionofbiodiversity, forestmanagementormanagementof wild floraandfaunaorresearchanddevelopmentactivities. • The primarypurposecriterionmay not bestableover time andcouldcausesubjectivityandincomparabilityacross countries. • Toensuremorestabilityitisproposedtoimplementtheprimarypurposecriterionbyusingthetechnicalnatureoftheactivity, i.e. technicallyidenticalactivitiesareclassified in the same way in all countries

37. Classifications (XI) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • Some NACE industriesarecloselylinkedandshouldoverlapto a greatextendwith EP and RM activitiesbecauseoftheirprincipalactivities. • Neverthelesstherecanbeproblems in identifyingthe relevant activities due tothestructureoftheexistingdatasets, e.g. • NACE A02 forestryandlogging: Onlyactivitiesforforests not availableforwoodsupplyandforuncultivatedforestsshouldbetakenintoaccount in CReMA 11 A (managementofforestareas). Ifthedistinctionbetweencultivatedanduncultivatedforestscannotbemadeitdoesn‘tmeanthatthe total outputof NACE A02 shouldbeconsidered in CReMA 11 A. • In thatcaseitisrecommendedbythepracticalguide not toincludemanagementofforestareasdata in the EGSS.

38. Classifications (XII) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • The enterprisesofNACE section E (E36 – E39) arethemainproducersofservicesfor CEPA 2, CEPA 3 andCReMA 10. But itisnormally not possibletoestablishstraightforwardrelationshipsbetweentheseeconomicactivitiesandthe environmental activities. • NACE E36 may not onlycarry out activities in relationtowatersupply but also tocleaningofwastewater. Iftheseactivitiescannotbeseparated out thepracticalguiderecommendsfortherevisionofthe EGSS handbookto cover also thedistribution, collectionandpotabilisationunderCReMA 10.

39. Classifications (XIII) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • The enterprisesofNACE section E (E36 – E39) arethemainproducersofservicesfor CEPA 2, CEPA 3 andCReMA 10. But itisnormally not possibletoestablishstraightforwardrelationshipsbetweentheseeconomicactivitiesandthe environmental activities. • The wholesaleofwasteandscrap (processing but nodistributionactivities) shouldbetakenintoaccountasitis an important link in theproductionchainofwastemanagement. • IftheseprocessingactivitesofNACE 46.77canbeseparated out by type of material theyshouldbeallocatedtotherespective RM activities, i.e. CReMA 11 B, CReMA 13 C orCReMA 14. • Ifthematerialscannotbeseparated out theseactivitiesshouldbeallocatedtothemainactivity, whichmayoftenbeCReMA 14.

40. Classifications (XIV) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • The enterprisesofNACE section E (E36 – E39) arethemainproducersofservicesfor CEPA 2, CEPA 3 andCReMA 10. But itisnormally not possibletoestablishstraightforwardrelationshipsbetweentheseeconomicactivitiesandthe environmental activities. • The recoveryofsortedmaterialsunderNACE E38 mayrelateto CEPA 3, CReMA 11 B, CReMA 13 C orCReMA 14 depending on thekindofmaterials. Iftherecoveryactivitiescannotbeseparated out ofother E38 activitiesthantheyshouldbeallocatedto CEPA 3. • Iftheycanbeseparated out but not differentiatedbykindof material theyshouldbeallocatedtoCReMA 14. • But ifthesortedmaterialscanbedifferentiatedtheyshouldbeallocatedtotherespective RM activities.

41. Classifications (XV) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • The enterprisesofNACE section E (E36 – E39) arethemainproducersofservicesfor CEPA 2, CEPA 3 andCReMA 10. But itisnormally not possibletoestablishstraightforwardrelationshipsbetweentheseeconomicactivitiesandthe environmental activities. • The activitiesofNACE E39 fall under CEPA 3 and CEPA 4. Iftheseactivitiescannotbeseparated out theyshouldberecordedunder CEPA 3. • Street cleaning: Ifthisactivityiscarried out byNACE E38itshouldberecordedunder CEPA 3. Ifthisactivityiscarried out by NACE 81.2 itshouldbetriedtogetdetaileddatatobeabletotakeitintoaccount in EGSS.

42. Classifications (XVI) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • The enterprisesofNACE section E (E36 – E39) arethemainproducersofservicesfor CEPA 2, CEPA 3 andCReMA 10. But itisnormally not possibletoestablishstraightforwardrelationshipsbetweentheseeconomicactivitiesandthe environmental activities. • The productionofenergyfromincineration(NACE E38.2)isdifferentlytreated in SEEA 2012 andthe EGSS handbook. • In termsof international comparabilitythepracticalguideproposestoinclude all wasteincinerationunder CEPA 3, whenitis not possibletodifferentiatebetweenrenewableand non-renewablematerials. • Ifthisispossibleincinerationof bio-degradablewasteshouldbeallocatedtoCReMA 13 A. • Also processingofwastecookingoilintobiofuelsshouldbeallocatedtoCReMA 13 A.

43. Classifications (XVII) • Problems andconventionsrelatedtoclassifications • 2. Identifying EP and RM relatedactivities in NACE Rev. 2 • Thereareenterprisescarrying out environmental activities in many NACE divisions. Unlessthe NACE subdivisionsaredetailedenoughtoidentifythese environmental activitiesfurtherdatasourcesormodelsarenecessary, e.g. • NACE A01: Calculationoforganicfarmingdatausingtheshareoforganicfarmland in total farmland, andifpossibletoadjustthesedatawiththedifferences in per-hectarerevenues. • NACE D35: Calculationoftheproductionofrenewableenergyusingdatafromenergystatistics, andifpossibletoadjustthesedatawithinformation on priceelementsandpricedifferencesbetweenelectricityfromvarioussources.

44. Classifications(XVIII) Problems andconventionsrelatedtoclassifications 3. Identifying EP and RM activitiesthrough COFOG All governmentexpenditureshouldbeclassifiedunderoneandonlyone COFOG position. As alreadymentioneddivision 5 isprovidedfor environmental protectionexpenditure. Due tothefactthatitemsofgovernmentexpenditurecanrelatetomorethanonefunctionthecompilersof COFOG havetodecide on the final allocation. Therefore, in somecases environmental protectionexpendituremaybeclassified in another COFOG division, in particular in COFOG 1 (generalpublicservices), COFOG 4 (economicaffairs) and COFOG 6 (housingandcommunityamenities). A cooperationwiththe national COFOG compilersisrecommended.

45. Classifications (XIX) Problems andconventionsrelatedtoclassifications 4. Identifying EP and RM outputusingproductclassifications Thereare different productclassifications (CPA, Prodcom, CN, …) thatcanbeusedtoidentify environmental productsandservices. Theydiffer in levelofdetail (from 6-digit codesto 10-digit codesat national level) andcoverage (servicesincludedorexcluded). Thereforetheirusefulnesswithregardtotheidentificationof environmental productsandservicesis limited. As youcanseefromtheEurostat EGSS list (enclosedtothe EGSS questionnaire) thereareproductsorproductgroupswhichmayberegardedas 100% environmental. But therearemuchmorewhichare not 100% environmental. Fortheseproductsorproductgroupsfurtherdataarenecessarytocalculatetheir environmental share.

46. Classifications (XX) Connected services Goods – Technologies – Services Adapted goods Connectedproduct End-of-pipetechnologies Integratedtechnologies Specializedservices Ancillary activities Environm. protection activities (CEPA) Resource management activities (CReMA) Prot. ofambientairandclimate Waste manage-ment Noise andvibrationabatement R&D Management ofwaters Management of fossil energyres. Management of wild floraandfauna Wastewatermanagement Soil, groundwater, surfacewater Biodiver-sityandlandscape Other Management offorestresources Manage-mentofminerals R&D Others Industries (NACE 2008 2-digit level)

47. Questions?

48. Basic approaches (I) • For compiling EGSS statistics three general approaches are proposed: • EGSS surveys: Theirmainadvantageisthattheyallowforidentifying EGSS enterprisesandcollecting relevant data. But thesesurveysare time andresource intensive. • Alternatively • existingsupplysidedatasources(like SBS, Prodcom, externaltradestatistics, productionandgenerationofincomeaccountsorsupplytablesofthe national accounts) • or • Demand sidedatasource(like EPEA orgrossfixedcapitalformationfrom national accounts)canbeused. • Ofcoursethesethreeapproachescanbecombineddepending on national circumstancesandavailabledatasources.

49. Basic approaches (II) • In the case of EGSS surveys two different models are possible: • Adding EGSS questions to an existing survey: The questions can be sent to the whole population of the survey or to a subset. They can be integrated into the main survey or be in the form of an extra sheet. • The main advantage of this model is that an existing survey infrastructure can be used. The main disadvantage could be that the respondents are not familiar with EGSS leading to poor data quality. • Conducting specific EGSS surveys: They can provide detailed information on the variables of the EGSS broken down by environmental activities and industries. • Depending on the design of the questions and the accuracy of the survey sample these specific EGSS surveys can provide the largest amount of information and the most precise results.

50. Basic approaches (III) • If supply side data sources are used to compile EGSS variables the following three types of producers – depending on their industrial classification – should be considered: • EGSS producers which are classified in specialist NACE categories that are characteristic for EP or RM activities: The whole or most of the output can be considered as EGSS relevant, e.g. NACE E37 – E39. Some non EGSS relevant secondary output may be singled out using data from supply tables. • EGSS producers which are classified in NACE categories that are not characteristic for EP or RM activities but which can be identified as relatively homogenous subgroups within a specific NACE category: Examples are producers of organic farm products in NACE A01 or producers of electricity from renewable sources in NACE D35.1. • In these cases further data are necessary to calculate the EGSS shares.