Task Force on EGSS of the Working Group on Environmental Expenditure Statistics

1. Environmental Goods and Services Sector (EGSS)Data Collection Handbook and Standard Tablesver. 8.2 Task Force on EGSS of the Working Group on Environmental Expenditure Statistics Meeting of 3/4 February 2009 Luxembourg

2. Overview • Introduction • The EGSS • Practical approaches and methods for the identification and classification of the EGSS • A framework for EGSS data collection • The Standard Tables • Presentation and interpretation of results EGSS Handbook ver. 8.2

3. 1. Introduction • Policy context • Purpose and scope • Structure and organisation of the handbook EGSS Handbook ver. 8.2

4. 2. The EGSS • Overview • Delimitation • Classification EGSS Handbook ver. 8.2

5. 2. The EGSS: overview • Definition: beyond the Environmental industry OECD/Eurostat Manual • Overview of the main issues characterising the EGSS EGSS Handbook ver. 8.2

6. 2. The EGSS: delimitation • What is included and excluded in the EGSS? • Environmental purpose: technical nature of the activity and producer’s intention • Not included in the sector • Natural hazards and risk management • Extraction, exploitation and mobilisation of non-renewable resources EGSS Handbook ver. 8.2

7. 2. The EGSS: delimitation • What kind of env. technologies, goods and services? • Environmental specific services • Connected products • Adapted goods • End-of-pipe technologies • Integrated technologies EGSS Handbook ver. 8.2

8. 2. The EGSS: env. services • Environmental specific and connected services. Is it useful for you to make the difference between connected services and environmental specific services? For simplification/clarification reasons, could the handbook and standard tables use environmental services? EGSS Handbook ver. 8.2

9. 2. The EGSS: env. technologies • Technology. The definition of technology includes practices, methods but also equipments which cannot be reduced to single goods. France: It is suggested to exclude the "technologies" of the list and replacing them by the goods and services by which they become concrete: equipments, patents, R&D services, software, etc...… Example of patents from IFEN report. ITALY: the WTO list is a list of goods, durable or non-durable. From an environmental perspective, these goods can be adapted or connected. Durable goods can be also part of a technology which, according to the definition adopted in chapter two, refers to the body of know-how about the means and methods of producing goods and services. So a singular good can not be considered as a technology: the producer of the technology not necessarily is the producer of a component like solar cells. I think that a lot of goods that are here classified as technologies (integrated or end-of-pipe) are in fact connected goods normally used as component of (integrated or end-of-pipe) technologies ICEDD: The DG Environment is interested in measuring integrated technologies in the framework of ETAP. Integrated technologies are also equipments which are often hardly separable into components, i.e. goods (and services) EGSS Handbook ver. 8.2

10. 2. The EGSS: env. technologies Technology in the RM. Do you agree that in the resource management domain the only end of pipe technologies we can find are measuring and monitoring equipments? Except measuring and monitoring equipments, all technologies in the resources management domain are integrated. EGSS Handbook ver. 8.2

11. 2. The EGSS: delimitation • What kind of producers? • General Government • Corporations • Market/non market activities • Principal/secondary/ancillary activities EGSS Handbook ver. 8.2

12. 2. The EGSS: delimitation • Delimitation of the sector. Is it clear the delimitation of the sector (inclusion/exclusion of the suppliers of components; exclusion of distributors; inclusion of the installation activities of environmental goods only, etc.) ? • Installation and construction of environmental goods: only of environmental goods. Example from FRANCE: if we consider that the insulation works and the insulation materials are environmental products, in order to determine the value of the production of the eco-activities, we have to add the value of the activities of insulation and the value of the insulating products. The value added will eliminate the double-counting and the sum of the value of both activities will be comparable to the GDP. The employment in both activities must be also added to obtain the environmental employment. EGSS Handbook ver. 8.2

13. 2. The EGSS: classification • Environmental purpose • Environmental protection • CEPA • Resource Management • CReMA EGSS Handbook ver. 8.2

14. 2. The EGSS: classification • CReMA 11, Water management: maintenance of water supply networks seems a reasonable way to estimate some (most) activities for the reduction of the intake of water. Is it possible? Would it be possible to get from the main actors in the water supply business the share of their turnover, employment linked to the maintenance of water supply networks? • Land management. The CReMA is not dealing with land in general. This depends on the definition of natural resources the TF decided to adopt. But most of the activities dealing with land can be classified in other domains (CEPA or CReMA). We can discuss about urban planning/development services to be classified in a consistent manner in the CEPA or CReMA. EGSS Handbook ver. 8.2

15. 3. Practical approaches and methods for the identification and classification of the EGSS • Identification of the population • Identification of env. activities • Identification of env. tech., goods and services • Classification of the EGSS in environmental domains EGSS Handbook ver. 8.2

16. 3. Practical approaches and methods for identification of the EGSS EGSS Handbook ver. 8.2

17. 3. Practical approaches and methods for identification of the EGSS: CANADA CANADA Through consultation of various government and private sector data users, staff identified an extensive list of products and services that are used in environmental protection. The Environment Accounts and Statistics Division has been researching external sources to identify businesses that have self-identified as being producers or importers of environmental goods and services. These businesses are then linked to the central business register and will be included in the stage two mail out. EGSS Handbook ver. 8.2

18. 3. Practical approaches and methods for identification of the EGSS: CANADA Through consultation of various government and private sector data users, staff identified an extensive list of products and services that are used in environmental protection. The Environment Accounts and Statistics Division has been researching external sources to identify businesses that have self-identified as being producers or importers of environmental goods and services. These businesses are then linked to the central business register and will be included in the stage two mail out. These products and services were linked to the businesses most likely producing / supplying them in the NAICS. These key NAICS categories are then being sampled in a two stage process. Initially, a first sample will be drawn from all available units within the eligible NAICS. These units will be the subject of a telephone survey to establish their nature of business and to place them within scope or out of scope for the survey. Subsequently, all in scope units from stage one and self identified business will be sampled a second time Population for the survey EGSS Handbook ver. 8.2

19. 3. Practical approaches and methods for classification of the EGSS • Recommendations for: • Climate change prevention activities • Recycling activities • Waste incineration • Forest certification • Protection of biodiversity and management of wild flora and fauna EGSS Handbook ver. 8.2

20. 3. Practical approaches and methods for classification of the EGSS: recycling activities EGSS Handbook ver. 8.2

21. 3. Practical approaches and methods for classification of the EGSS: recycling activities • Goods produced from secondary raw materials. In most of the European countries, the basic goods production is made from secondary raw materials (in France more than 40 % of the glass, steel, non-ferrous metals production and 60 % of the paper production). Including goods made from secondary raw materials would lead to a great extension of environmental goods. Should the whole newspaper paper - and newspapers be included? , the whole steel production made from recovered scrap iron…? If all the glass produced in one country uses up to a certain % of secondary raw materials, then only glass produced with more than that % of secondary raw materials will be recorded as adapted good for CReMA 14. For paper, for example, only paper 100% recycled could be taken as adapted good. EGSS Handbook ver. 8.2

22. 3. Practical approaches and methods for classification of the EGSS: ancillary vs autoproduction of renewable energy • Ancillary vs autoproduction of renewable energy. Ancillary activities do not include (SBS definition) the production of energy for own use. Thus including the production of electricity and heat from renewable (and combined heat and electricity production) as ancillary activity would be in contrast with standard definition of ancillary activities. Should the production of renewable energy consumed in its entirety in the principal or secondary activity of the parent unit be considered an ancillary activity in the resources management domain? If not, where this activity should be classified and which kind of ancillary activities we can find in the resources management domain? EGSS Handbook ver. 8.2

23. 3. Practical approaches and methods for classification of the EGSS: sustainable activities • Sustainable activities. The 1999 OECD/Eurostat Manual contains “sustainable” activities. The handbook includes an annex (annex 8 of chapter 3) with these activities and the environmental domains: is it useful for you? EGSS Handbook ver. 8.2

24. 4. A framework for EGSS data collection • Sources for data compilation • Existing statistics • Surveys • Turnover • Value Added • Employment • Exports EGSS Handbook ver. 8.2

25. 5. The Standard Tables • Organisation of the ST • How to fill in the ST? EGSS Handbook ver. 8.2

26. 5. The Standard Tables • Corporations’ example sheet. Is it clear enough? Exhaustive? • Market/non market activities. The market/non market share of each NACE division is not asked anymore in the Standard Tables. Should we say that countries should add some information on the market/non market share of the activity in the footnotes? • Employment gender issue. Countries willing to add information on gender issue in employment could do it in the footnotes or add sheets. Should we allow countries to add sheets for compiling data on employment by gender (but also on employment by education, for example). • Ancillary activities of General Government. Is there any example of environmental ancillary activities to be recorded in the GG sheets? No, but SNA93 5.39. EGSS Handbook ver. 8.2

27. 5. The Standard Tables • Green shadowed cells. In the corporations’ sheets these cells should be of help. They represent a kind of guidance on the different types of technologies and products which can be produced by the different NACE sectors. Is it the use of this graphical element useful and clear enough? • Green shadowed cells. In the General Government’s sheets they have been used since it is unlikely to find goods and technology and ancillary activities produced by GG. Should we simply remove the lines? EGSS Handbook ver. 8.2

28. 6. Presentation and interpretation of results • By economic sector • By environmental domain • By economic variable • By environmental output • Time series EGSS Handbook ver. 8.2

29. 6. Presentation and interpretation of results • Fictitious examples chapter 6. Adding examples from countries in Chapter 6 could make the chapter unclear since countries used classifications, nomenclatures and definitions different from the proposed ones in the Handbook. EGSS Handbook ver. 8.2

30. Annexes • Details on goods/services/technologies, general government / corporations, ancillary activities • Details on the CEPA and CReMA classifications and examples • Correspondence tables NACE 1.1 / NACE 2 • Identifying the population: examples from countries • Identifying integrated technologies and adapted goods: examples • The WTO list of env. goods • The German list of env. goods and services • Classification of sustainable activities • The demand side approach • Details on estimating variables using surveys • The double counting problem • Data collection: example from countries EGSS Handbook ver. 8.2

31. Other issues • Data collection. Making a choice of which are the sectors to be included with priority in the first collection (or if priority should be put on all sectors...). • Recalculation. From one data collection to another it is likely methodology can change/improve. Will it be possible for you to make re-calculations when the methodologies change? EGSS Handbook ver. 8.2

32. Thank you for your attention!Thank you for the work done in these 3 years!mjl@icedd.bemo@icedd.becm@icedd.be EGSS Handbook ver. 8.2