Share of environmental goods and services sector in GDP up by a quarter in eight years
According to Statistics Estonia, the output of the environmental goods and services sector amounted to €5 billion in 2022. The output of goods and services in the energy efficiency and renewable energy sector accounted for nearly two thirds of this, or €3.1 billion. The share of value added of the environmental goods and services sector in gross domestic product (GDP) has increased by a quarter, or one percentage point, compared with 2014.
Kaia Oras, a leading expert at Statistics Estonia, explained that the growth in demand for environmental goods and services has been due to both increased awareness of environmental problems as well as higher environmental and energy saving requirements, especially in construction. “The rapid growth in energy-efficient new construction and reconstruction of buildings has a huge impact. Together, these generated €1.5 billion in output,” Oras added.
Among the energy produced from renewables, electricity and heat production from renewable energy sources accounted for €482.2 million and the production of fuel wood and wood chips for €548.7 million.
The production and installation of the necessary equipment is also essential for renewable energy generation. “For instance, the installation of solar panels and wind turbines amounted to €42.1 million. The production of renewable energy equipment, mainly wind turbine parts and biofuel boilers and burners, totalled €26.4 million,” noted Oras.
Waste treatment and circular economy services and the production of goods in the same domain account for the second-largest share in the environmental goods and services sector, with output reaching €965.3 million in 2022. Among the larger sectors, services and goods related to water supply and wastewater treatment are also worth mentioning.
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.
Contribution of environmental goods and services to the economy is growing
The contribution of the output of the environmental goods and services sector to GDP increased by 1.4 percentage points, from 5.2% in 2014 to 6.6% in 2022. The sector's good performance is also reflected in the fact that the share of value added in GDP has risen by one percentage point, from 3.9% to 4.9%.
Kaia Oras explained that a better understanding of the seriousness of environmental problems and new agreements and requirements have also created an increased demand for environmental goods and services. Public concern about climate change has probably boosted demand as well.
The environmental goods and services sector employs nearly 36,400 people. Employment in the health sector, for example, is about the same. In 2022, there were nearly 10,000 more employees in full-time equivalents in the environmental goods and services sector than in 2014 – an increase of 37%.
The share of exports of the environmental goods and services sector in total exports has increased by 0.6 percentage points, from 2% in 2014 to 2.6% in 2022. Foreign demand has boosted exports of energy carriers from renewables, fuel wood and wood chips, and goods related to energy saving. Exports of scrap metal have declined over the last two years, due to both price changes and market demand. The fall in exports of scrap metal led to a 0.2 percentage point decrease in the share of exports of environmental goods in 2022 compared with 2021.
Environmental goods and services are products that are designed to prevent and reduce pollution and deterioration of the environment and to protect natural resources from depletion. The scope of environmental goods and services is defined by the UN System of Environmental-Economic Accounts Central Framework (SEEA CF) and the EU Regulation on environmental economic accounts and the corresponding guidelines.
See also the green economy section on our website.
General data have been published in the statistical database table KK38, more detailed data are available in table KK39.
When using Statistics Estonia’s data and graphs, please indicate the source.
For further information:
Heidi Kukk
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee (press[at]stat[dot]ee)