Renewable energy and energy efficiency solutions are the main drivers of Estonia’s output of environmental goods and services
According to Statistics Estonia, the output of environmental goods and services in 2023 was 4.1 billion euros. The value added of the environmental goods and services sector represented 3.9% of the gross domestic product (GDP) in 2023.
Environmental goods and services refer to production activities which have as their main purpose the prevention, reduction and elimination of pollution and of any other degradation of the environment, as well as the safeguarding of natural resources against depletion. In the renewable energy field, for example, the relevant goods and services include solar panels and wind turbines as well as their installation and maintenance, but also the production of renewable energy and related energy carriers. In the circular economy and waste management domain, the environmental goods include, for example, equipment for waste management and material recovery, garbage cans and bags, and the environmental services include waste collection, sorting, treatment and recycling.
Kaia Oras, a leading expert at Statistics Estonia, said that the output, value added and GDP contribution of the environmental goods and services sector decreased slightly in 2023 year on year, although the long-term trends are positive. “The main reasons for the decline in 2023 were the decreased production of renewable energy and lower prices, which had been at record levels in 2022,” explained Oras.
The biggest contributor in this sector is the domain of energy efficiency and renewable energy
The output of goods and services in the energy efficiency and renewable energy field was 2.1 billion euros, which accounted for nearly a half of the total output of environmental goods and services in 2023. “The rapid growth in energy-efficient new construction and renovations for energy efficiency improvements had a big impact. Together, these generated 717.8 million euros in output,” noted Oras.
In 2023, renewable energy production amounted to 928.1 million euros. This included 363.3 million euros contributed by electricity and heat production from renewable energy sources, and 469.5 million euros from the production of fuel wood and wood chips.
The second-largest domain in the environmental goods and services sector is waste treatment and circular economy where the output of goods and services was 948 million euros in 2023. Other more significant contributors were water supply and wastewater treatment with 241.7 million euros of output, and water saving and management of waters with 206.1 million euros of output.
The remaining output of the environmental goods and services sector – such as organic farming products, environmental education and management services, forest protection and regeneration, research and development, protection of game and replenishment of fish stocks, construction of noise barriers and non-motorised roads – accounted for around a tenth of the sector’s output.
The environmental sector has grown compared with 2014
The environmental goods and services sector accounts were first compiled for the year 2014 and the sector’s value added then was 3.7% of the GDP. It has since increased, reaching 3.9% of the GDP in 2023.
Kaia Oras explained that the growth in the environmental sector compared with 2014 reflects the gradual transition in Estonian economy to more resource and energy efficient activities. “The growth has been supported by the EU climate policy and support measures as well as by investments in renewable energy, improved energy efficiency of buildings, and waste recycling. There is also increased demand for exports of environmental goods, particularly in the fields of energy saving and wood fuels,” said Oras.
The share of exports of environmental goods and services in total exports increased from 1.8% in 2014 to 2.5% in 2023. Foreign demand has boosted exports of energy carriers produced from renewables (mainly fuel wood and wood chips) and exports of goods related to energy saving.
About 30,000 people are employed in the environmental goods and services sector, and this number grew by 5,000 in nine years. There is a similar number of people employed, for example, in professional, scientific and technical activities.
The scope of environmental goods and services is defined by the Central Framework of the System of Environmental Economic Accounting (SEEA CF) and by the EU regulation on European environmental economic accounts.
Data as at 31 October are published. The indicator values may change if there are any revisions made in the data sources after this date.
See also the green economy section on our website. General data have been published in the statistical database table KK380; more detailed data are available in table KK39.
When using Statistics Estonia’s data and graphs, please indicate the source.
For further information:
Susann Kivi
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 5696 6484
press [at] stat.ee