ET 6 – Further integrating the monetary modules Agenda point 8 26 November 2014 ET 6 – Further integrating the monetary modules Agenda point 8 Eurostat E2 – Environmental statistics and accounts; sustainable development TF environmental transfers Madrid, 25-26 November 2014 Task force on environmental transfers

Content of the presentation Purpose Examples of differences in terminology and resulting problems Overarching definition of env. Activities Product categorisation: characteristic/non-characteristic, sole/dual purpose categories of amended Reg. 691/2011 questions Accounting structure Specific integration problems and questions

Purpose Unify a. clarify terminology in various MEA modules Avoid using the same word for different concepts State explicitly relations between MEA modules Overarch revision and drafting of manuals Use and analyse data efficiently (No additional data reporting)

Examples of differences in terminology (1) Activities/products “typical” for the env. domain: SEEA: “specific” SNA, ESA, SERIEE: “characteristic” SNA specific products: characteristic plus connected 2009 EGSS handbook: specific products being the output of characteristic activities

Examples of differences in terminology (2) Adapted products: EPEA: less pollutant at consumption or scrapping stage than equivalent products of similar utility + more costly ReMEA: resource-efficient also at the production stage + more costly EGSS: less pollutant at consumption or scrapping stage or containing less natural resources in the production stage

Examples of differences in terminology (3) Environmental technologies (end-of-pipe and integrated): 2009 EGSS handbook: technical processes, installations and equipment and methods of knowledge ( a product category) EPEA: used to distinguish types of GFCF for EP national accounts: not a product category

Example of a problem resulting from differences in terminology Is renewable energy an adapted good or the output of a characteristic activity? in expenditure accounts only GFCF and IC for characteristic activities is counted, but not for the production of adapted products. in the 2009 EGSS handbook photovoltaic electricity is an adapted good (since it is considered as a product containing less natural resources and being more resource efficient at production than electricity based on fossil resources)

Overarching definition of env. activities Environmental activities: those that directly serve an environmental purpose characteristic environmental activities (e.g. waste collection and treatment, production of electricity from wind power) those that produce specific products whose use serve an environmental purpose non-characteristic environmental activities (e.g. production of trash bags and of renewable energy generating equipment) Identification: primary purpose  chiefly technical nature

Characteristic/non-characteristic products Characteristic environmental products: output of characteristic env. Activities directly serve an environmental purpose can include market output, non-market output, output for own final use and output of ancillary env. activities Non-characteristic environmental products: output of non-characteristic env. activities specific products whose use serve an env. purpose are mainly market output

Sole/dual purpose products Sole purpose: No other purpose than EP or RM Dual purpose: Primary use not environmental but purposely produced to be less pollutant or more resource efficient than normal equivalent products at the time of their use, scrap or production

Categorisation by characteristic/non-characteristic   Directly serve env. purpose Characteristic products Use serve env. purpose Non-characteristic products cover connected and adapted products and end-of-pipe and integrated technologies

Categorisation by sole/dual purpose No other purpose than EP or RM (= sole purpose) Produced to be less pollutant or more resource efficient (= dual purpose) Characteristic and non- characteristic products (connected products and end of pipe technologies) Characteristic and non- characteristic products (adapted products and integrated technologies)

Proposed cross categorisation (more detail in Table 1 of background document ENV/ET/TF/06 (2014), p. 18)   Sole purpose EP or RM products Dual purpose EP or RM products Characteristic env. products Characteristic (sole purpose) products Characteristic (dual purpose) products Non- characteristic (or "other") env. products Covers connected products (predominantly for IC and FC) and end of pipe technologies (predominantly for GFCF) Covers adapted products (predominantly for IC and FC) and integrated technologies (predominantly for GFCF)

Categories of amended Reg. 691/2011 Categories of the Regulation Proposed IF categorisation   Sole purpose EP or RM products Dual purpose EP or RM products Specific services Characteristic products Characteristic (sole purpose) services Characteristic (dual purpose) services Sole purpose (connected) products and adapted (dual purpose) goods Characteristic (sole purpose) goods Characteristic (dual purpose) goods Non- characteristic (="other") env. products Covers connected products and end- of-pipe technologies Covers adapted products and integrated technologies Technologies

Questions on the proposed product categorisation Agree with introducing dual purpose category in IF? Agree with treating in the IF organic farming as characteristic activity and its products as characteristic dual purpose products (whereas legal EPEA module remains limited to services)? renewable energy production as a characteristic activity and its products as characteristic dual purpose products (whereas in the legal EGSS module it is an adapted good)?

Accounting structure

Specific integration problems (1) Dual purpose products: in expenditure accounts adapted products and integrated technologies valued at extra cost in EGSS a SUT at full cost (basic and purchaser prices) From basic prices to purchase prices: Little overlap between taxes on env. products a. env. taxes Not all subsidies on env. products are env. subsidies

Specific integration problems (2) Scope: Exp. accounts can include exp. on non-env. products EGSS only to cover environmental products Reporting of data on NPISH: With households in the module env. subsidies and similar transfers With general government in expenditure accounts

Questions on specific integration problems Any experience with dealing with the specific integration problems for the IF? Reporting of data on NPISH in env. subsidies module With government or with households? Or split NPISH and household (2 separate lines) Any other comments?