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Environmental Goods and Services Sector (EGSS) 2020

Production in the environmental sector levelled off in 2020

Statistical news from Statistics Sweden 2022-09-15 8.00

The environmental sector accounts for 4,1 percent of Sweden’s total GDP. The production of environmental goods and services was unchanged in 2020 compared to the previous year. The environmental sector employs 159 000 people, of which about 80 percent are men.

Statistics on the environmental sector describe the part of Sweden’s economy that produces environmentally-friendly goods and services. The environmental sector includes the production of goods for environmental protection and sustainable resource management.

The value added of the environmental sector amounted to SEK 204 billion in 2020. This accounts for 4,1 percent of Sweden’s total GDP, which can be compared with 2,7 percent in 2003 when the time series started.

The production of environmentally-friendly goods and services, measured as production value, amounted to SEK 549 billions in 2020, and are largely unchanged compared to the previous year. The production of environmentally-friendly goods and services has increased since the beginning of the time series in 2003, with exception for a decrease in 2009. Between 2013 and 2019 the production value in the environmental sector increased from SEK 312 billion to SEK 550 billion mainly due to increases in the construction and energy industry. During this time period the production value in the construction industry has more than doubled (+ 124 percent) and almost doubled in the energy industry (+84 percent).

Environmental sector value added, production value and GDP, current prices, 2003-2020

Graph: Environmental sector value added, production value and GDP, constant prices, 2003-2020

Source: Statistics Sweden, Environmental Accounts and National Accounts

Construction contributed the most to production

Statistics on the environmental sector are also broken down by industry (SNI 2007). The construction industry and companies within drainage, waste and sanitation are the industries that contributed the most to production value and value added for the environmental sector in 2020. The construction industry includes all nearly-zero energy buildings according to guidelines from the European Statistical Office, Eurostat. Producers of renewable energy and companies in forestry and logging, also form a large share of the environmental sector.

With regard to employment, the labour force in the environmental sector is mainly located among construction. Statistics on the environmental sector also estimate exports of goods and services from the environmental sector. Exports for the environmental sector are dominated by goods and services from the manufacturing sector.

The environmental sector per aggregate industry unit, percent of environmental sector’s total value added, production value, employment and exports, 2020

Graph: The environmental sector per aggregate industry unit, percent of environmental sector’s total value added, production value, employment and exports, 2020

Source: Statistics Sweden, Environmental Accounts

Most employed persons in the environmental sector are men

The environmental sector employed 159 000 persons in 2020, of whom 80 percent were men and 20 percent were women. Women employed in the environmental sector are often employed in construction and in the service sector (45 percent). Men most often work in construction, drainage, waste and sanitation (70 percent).

Number of men and women employed in the environmental sector, 2003–2020

Graph: Number of men and women employed in the environmental sector, 2003–2020

Source: Statistics Sweden, Environmental Accounts and RAMS

The environmental sector’s share of the economy is highest in Jämtland

Statistics on the environmental sector are also available per county. Metropolitan regions account for the highest total value added, production value and number of persons employed. However, with regard to value added normalised as a share of gross regional product (GRP), a different picture emerges. The highest value added as share of GRP for the environmental sector is found in Jämtland, Västernorrland and Kalmar counties, while the lowest share is found in Stockholm, Skåne and Västra Götaland counties.

Environmental sector per county, environmental sector’s value added as a share of GRP, 2020, percent

Graph: Environmental sector per county, environmental sector’s value added as a share of GRP, 2020, percent

Source: Statistics Sweden, Environmental and National Accounts

Revisions

Earlier statistics published about the environmental sector has been revised and the whole time series has been updated. The revisions concern especially SNI D35, energy industry and A02, forest industry. In SNI D35 the companies included as well as their share of renewable energy production has been updated. This has led to an increase in production value of between 43-72 percent for the year 2016-2019. In SNI A02 there has been an update in forest accounts and values has been revised upward with 4-6 percent between 2015-2020. In total, these adjustments mean production value has been revised upward with 6-8 percent between 2016-2020.

Definitions and explanations

Environmental accounts are organised using national accounts as a base to enable reporting on environmental statistics and economic statistics in a common system. The environmental accounts, which are a UN-based statistical standard, provide opportunities for analysing connections between the economy and the environment, in particular through the use of industries that are reported according to the Swedish Industrial Classification (SNI).

Statistics Sweden’s Environmental accounts

Statistics on the environmental sector form part of the environmental accounts framework. Since 2017, under the regulation on European environmental accounts, it is mandatory for EU Member States to report these statistics annually to Eurostat. However, Statistics Sweden has published statistics on dates earlier than this, where statistics are available as early as 2003. In connection with the publication in 2018, the statistics were revised to better align with new guidelines and to be more closely integrated with the national accounts. This also enables deeper national and international comparisons, such as the environmental sector’s contribution to the Swedish economy. In addition to the national accounts data, data on company finances is also used to describe net turnover, from RAMS (register-based labour market statistics) to describe gainful employment, and from foreign trade statistics to describe exports.

Statistics on the environmental sector are based on a micro-database of companies and workplaces that produce environmentally-friendly goods and services. For the forest (A02) and construction (F41-43) industry a model estimate is used. For forestry and logging, statistics on the environmental sector are based on certified forestry. For construction operations, statistics on the environmental sector are based on data on nearly-zero energy buildings.

The statistics follow Eurostat’s environmental sector manual, which contains definitions of which economic activities are included in the environmental sector. Examples of economic activity included are production of renewable energy, wastewater treatment, waste management, sanitation, environmental consultants and organic farming. Examples of economic activity not included are wholesale of waste products, nuclear power and public transport.

To read more on definitions and delimitations, see Eurostat’s handbook:

Environmental goods and services accounts, Handbook, 2016

Next publishing will be

The next publication on the environmental sector up to 2021 will take place in 2023.

Statistical Database

More information is available in the Statistical Database

Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.

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