Workshop on Reporting Environmental Goods and Services EGSS: Definitions Workshop on Reporting Environmental Goods and Services 12-13 november 2009 Bech Building – A3/45

Overview Moving a step forward… OECD/Eurostat 1999 - Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities Overview Moving a step forward… OECD/Eurostat 1999 - Eurostat 2009 What is included and excluded? Pollution prevention and natural resources The environmental purpose What kind of goods, services and technologies? Connected, adapted, specific, cleaner… Producers and activities

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Goods, services and technologies classified according to their function and characteristics. Environmental specific services Connected products Adapted goods Environmental technologies Handbook, Chapter 2 (2.2.2), pp. 33-38

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Environmental specific services: Environmental ‘specific’ services consist of the output of environmental protection or resource management ‘characteristic’ activities. Examples (EP) are waste management and wastewater management activities Examples (RM) are activities for the reduction of water leaks and losses, energy and water-saving activities.

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Connected products: According to the SNA, connected products are ”clearly covered by the concept of the field under study, without being typical, either by nature or because they are classified in broader categories of products”. In the case of the EGSS, a connected product directly serves and has no use except for environmental protection or resource management.

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Connected products can be divided into: EP services such as maintenance services for septic tanks. RM services such as the installation of renewable energyproduction technologies. Goods for the provision of EP services such as bin bags, septic tanks, equipment aimed at monitoring and controlling the concentration of pollutants in wastewater as well as filters to capture air particles and all components that are used specifically and exclusively for environmental protection technologies. Goods for the reduction of resources use or the provision of RM services such as equipment aimed at monitoring and controlling the level of groundwater (e.g. water table) and all components that are used specifically and exclusively for resource management technologies.

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Products are considered as connected when they serve a specific function even though they are not the output of the activities characteristic of the function. Installation of environmental technologies (end-of-pipe or integrated technologies) is to be considered a connected service when the installer is specialised (i.e. most of its turnover comes from the installation of these technologies). An example is the installer who mainly installs solar panels.

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Adapted goods: are goods which are less polluting or more resource efficient than equivalent normal goods which furnish a similar utility. Cleaner goods, which help to prevent pollution or environmental degradation because they are less polluting at the time of their consumption and/or scrapping compared to equivalent ‘normal’ goods. Examples are mercury-free batteries, cars or buses with lower air emissions and silent asphalt. Resource efficient goods, which help to prevent natural resource depletion because they contain less natural resources in the production stage (for example, recycled paper and renewable energy, heat from heat pumps and solar panels, energy and heat from combined heat and power) and/or in the use stage (for example, resource-efficient appliances, watersaving devices such as tap filters or differentiated systems for flushing the toilet, desalinated water).

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? Environmental technologies are technical processes, installations and equipment (goods) and methods or knowledge (services), the technical nature or purpose of which is environmental. End-of-pipe technologies which are mainly technical installations and equipment produced for the measurement, control, treatment and restoration/correction of pollution, environmental degradation and resources depletion. Integrated technologies are technical processes, methods or knowledge used in production processes which are less polluting and resource intensive than the equivalent average technology used by national producers Cleaner technologies Resource efficient technologies

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies? To identify integrated technologies and adapted goods, it is necessary to find an alternative for comparison. This alternative corresponds to the average alternative available in the national market which furnishes similar utility and has similar functions and characteristics in all respects except for those relating to environmental protection or natural resource preservation.

What kind of goods, services and technologies? Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities What kind of goods, services and technologies?

Producers and activities Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities Producers and activities Corporations / General Government Principal / Secondary / Ancillary Market / Non market Handbook, Chapter 2 (2.2.3), pp. 39-42

Producers and activities Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities Producers and activities Corporations / General Government General Government is defined as central, regional and local governments, authorities, communities and government agencies relating to legislation, supervision, control, information, etc. This relates to the provision of public services to the users more or less free of charge and financed mainly from the government budget. Excluded are governmentowned entities that conduct market operations, such as public enterprises. The definition of General Government in the EGSS excludes government-owned and controlled non-market units, known as public corporations, such as waste and wastewater treatment services. Such units are classified in the Corporations Handbook, Chapter 2 (2.2.3), pp. 39-42 and Annex I, p. 46

Producers and activities Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities Producers and activities Principal / Secondary / Ancillary Principal activities are the activities that produce most of the revenue of the unit under consideration. Secondary activities are the activities that produce smaller quantities of other technologies and products in addition to principal activities that are destined to be used by other units. The distinction between principal and secondar activities is based on the related share of the gross value added (GVA). Ancillary activities result in technologies or products that are retained for use other than capital formation in the same unit. Thus, ancillary activities are those that exist solely to support the main productive activities of an entity by providing goods or services for the use of that entity. The case of renewable energy autoproduction Handbook, Chapter 2 (2.2.3), pp. 39-42 and Annex I, p. 47-48

Producers and activities Overview OECD 1999/ Eurostat 2009 Included/ excluded Goods, Services and technologies Producers and activities Producers and activities Market / Non market Activities can be market or non-market, depending on the percentage of production costs covered by the price used for the sale of the product or technology. According to the ESA 95: Market activities involve the selling of a technology/product at a price that is economically significant, namely that the sale covers more than 50 percent of the production costs. The price considered is the price excluding value added tax or subsidies. Non-market activities provide technologies or products freely or at an economically insignificant price. Handbook, Chapter 2 (2.2.3), pp. 39-42

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