Indicator 12.61 Gross value added in environmental goods and services sector

The environmental goods and services sector (EGSS) is defined as that part of a country’s economy that is engaged in producing goods and services that are used in environmental protection and resource management activities either domestically or abroad. Gross value added in EGSS represents the contribution of the environmental goods and services sector to GDP. Products for environmental protection prevent, reduce and eliminate pollution or any other degradation of the environment and include measures undertaken to restore degraded habitats and ecosystems. Examples are electric vehicles, catalysts and filters to decrease pollutant emissions, wastewater and waste treatment services, or noise insulation works. Products for resource management safeguard the stock of natural resources against depletion. Examples are renewable energy production, energy efficient and passive buildings, seawater desalinization or rainwater recovery.

Indicator is used to monitor progress towards SDG 12 on ensuring sustainable consumption and production patterns and SDG 9 on building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation, which are embedded in the European Commission’s Priorities under ‘Sustaining our quality of life: food security, water and nature’.

SDG 12 calls for a comprehensive set of actions from businesses, policy-makers, researchers and consumers to adapt to sustainable practices. It envisions sustainable production and consumption based on advanced technological capacity, resource efficiency and reduced global waste. SDG 9 calls for building resilient and sustainable infrastructure and promotes inclusive and sustainable industrialisation. It also recognises the importance of research and innovation for finding lasting solutions to social, economic and environmental challenges.

The long-term objective for this indicator is a value of 5.5.