Presentation on theme: "United Nations Headquarters, New York"— Presentation transcript:
1 United Nations Headquarters, New York Definition and delimitation of the Environmental Goods and Services Sector according to the 2009 Eurostat handbookCesare CostantinoItalian national statistical instituteEnvironmental accountingFederico FalcitelliMinistry of the Economy and FinanceState General Accounting DepartmentExpert Group meeting on International economic and social classificationsUnited Nations Headquarters, New York1-4 September 2009
2 SummaryBackgroundDefinition and delimitation of EGSS according to the 2009 Eurostat handbookDefinition of EGSS and relationship with the scope of the satellite accounts on environmental expenditureDelimitation of EGSS, definitions and classifications with specific reference to:Environmental purposesProductsProducersOverviewConcluding remarks
3 Need for an international handbook BackgroundStrong policy interest in measures targeted to the environmental goods and services sectorneed to have good quality, comparable, coherent data on e.g. EGSS’ turn-over, value added, etc., while minimising the burden on national statistical officesThe international guidelines available - “The Environmental Goods & Services Industry. Manual for data collection and analysis” (OECD/Eurostat, 1999) – need to be improvedleave open a number of issues on the definition, classification and identification of the sectordo not deal with all operational aspectsare 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 BackgroundIn 2007 Eurostat launched an ad hoc Task Force for developing a handbook on the Environmental Goods and Services Sector - EGSSThe handbook was finalized and was approved in march 2009 by the Eurostat Working Group on Environmental Expenditure statisticsThe approach developed by Eurostat was considered by the London Group and is taken into account for the on-going revision of the SEEA
5 Structure of the handbook: The Eurostat handbookBackgroundStructure of the handbook:Ch. 1 background information on EGSSCh. 2 definition, delimitation and classification of the sectorCh. 3 guidelines to identify and classify the populationCh. 4 methodologies for data collection, reporting and analysisCh. 5 Standard tables for data collection and process for their compilationCh. 6 Recommendations and examples on presentation and interpretation of figures
6 Definition of EGSSDefinitionThe 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 USE Environmental Goods and Services Sector statistics Supply side perspective: EGSS statistics and satellite environmental accountsDefinitionSUPPLYUSEEnvironmental Goods and Services SectorstatisticsSEEA and SERIEE satellite accounts (EPEA+RUMEA)EPEAEnvironmental Protection Expenditure AccountGoodsServicesGoodsServicesEnvironmental protectionEnvironmental protectionRUMEAResource Use and Management Expend. AccountGoodsServicesGoodsServicesResource use and managamentResource use and management
8 Defining and delimiting the EGSS Definition and delimitationEGSS is defined and delimited by answering three main questionsWhat does it mean “environmental”?Environmental purposes coveredWhich kind of environmental technologies, goods and services?Products coveredWhich kind of producers?Producers covered
9 Types of environmental purposes covered EGSS includes the provision of environmental technologies, goods and services that respond to two types of environmental purposes:Environmental Protection (EP): technologies and products suitable 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 wasteResource 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 includesAdministative activities, education, training, information and communication activitiesResearch and development activitiesremark 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 purposesNot 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 purposesHow to establish whether a product responds to an environmental purposeThe environmental purpose at issue has to be the “main purpose” for the productHow to identify the main purposemainly on the basis of the technical nature of the activity or the producer’s intention, i.e. regardless of the intention of the usersThe selection criterion based on the producer’s intention should however be applied for handling cases that are not already solved according to the technical nature of the activityIn practice, producer’s intention means:the awareness of the producer about the environment-friendly characteristics of its output;the awareness of the producer about the use of its output;the environment-related markets to which the producer addresses its output(e.g. producers of renewable energy technologies, clean cars or eco-efficient devices).Does EGSS include whatever product beneficial to the environment?All products whose main purpose (according to the technical nature or the producer’s intention) is not an environmental purpose are not included in the EGSS even if the product has a favourable impact on the environment (e.g. electronic delivery of documents). Hence, excluded from the EGSS are products that, while beneficial to the environment, primarily satisfy technical, human and economic needs or requirements for health and safety.
12 Types of environmental products Types of productsEnvironmental protection (EP)Resource management (RUM)Environmental specific servicesare the output of Environmental Protection (EP) or Resource Management (RM) “characteristic” activitiesEP services: waste management, wastewater management, and any other kind of service according to CEPARM services: water or energy saving, production of energy by means of renewable sources, and any other kind of service according to CReMAConnected productshave no use except for supporting the execution of EP or RM specific servicesmay be services or goods (durable or non-durable goods)e.g. maintenance services for septic tanks, trash bags, septic tanks, and all components that are used specifically and exclusively for environmental protection technologiese.g. tap filters, differentiate systems for flushing the toilet, and all components that are used specifically and exclusively for resource management technologiesAdapted productsequivalent normal products have to exist (at least theoretically)their primary use is not for EP or RMthey may be durable or non-durable goods“cleaner” products: e.g. mercury-free batteries, cars or buses with lower air emissions, biodegradable soaps, ecological paints“resource efficient” products: e.g. recycled paper, recycled glass, efficient refrigerators and washing machines, renewable energy, heat from heat pumps and solar panelsEnd-of-pipe technologiestreat pollution that has been generated or resources that have already been withdrawn, or measure the level of pollution or resources use (monitoring)e.g. filters, incinerators, wastewater management facilitiese.g. plants and methods for producing recycled productsIntegrated technologiesdecrease material inputs, reduce energy consumption, minimise waste and/or reduce emissions compared to the national current standard“cleaner” technologies: e.g. organic farming which reduces the impact of agriculture on soil quality“resource efficient” technologies: e.g. plants and methods for producing renewable energy such as through windmills, solar panels, hydroelectric turbines, combined heat and power
14 Environmental purposes and classifications to be used Environmental prot. (EP)CEPA 2000remark: CEPA 2000 is an international standardEGSS environmental purposesResource manag. (RM)CReMA (Classification of Resource Management Activities)remark: CReMA is derived by the draft CRUMA 2009 (Resource Use activities not included)
15 CReMA (Classification of Resource Management Activities) 10: Management of waters11: Management of forest resources11 A: Management of non-cultivated forest areas11 B: Minimisation of the intake of forest resources12: Management of wild flora and fauna13: Management of energy resources13 A: Production of energy from renewable sources13 B: Heat/Energy saving and management13 C: Minimisation of the intake of fossil resources as raw material for other use than energy production14: Management of minerals15: Research and development16: Other natural Resource Management activities
16 Summary of main concepts OverviewEconomic variablesTurn overValue addedEmploymentExportsEnvironmental purposesEnvironmental protectionCEPA 2000Resource managementCReMAProductsEnv. Specific servicesConnected products (goods and services)Adapted goods (cleaner and resource-efficient)End of pipe technologiesIntegrated technologiesProducersPrincipal / secondaryNon marketCorporationsNACE 2 digit levelMarketAncillaryGeneral Gov.Administrative level
17 Definition and delimitation of EGSS: major achievements Concluding remarksThe EGSS concept according to the 2009 Eurostat handbook is consistent with the one developed within the 1999 OECD/Eurostat guidelinesAs 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 SERIEEprovided 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?