1. 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, November 2014
Task force on environmental transfers

2. 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

3. 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)

4. 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

5. 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

6. 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

7. 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)

8. 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

9. 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

10. 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

11. 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

12. 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)

13. 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)

14. 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

15. 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)?

16. Accounting structure

21. 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

22. 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

23. 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?