Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 691/2011 on European environmental economic accounts
Date: 2013-05-02
Institutions: European Commission
Subjects: EU statistics, data collection, economic statistics, energy production, environmental protection, environmental statistics, national accounts, overheads

EUROPEAN 
COMMISSION 

Brussels, 2.5.2013  
COM(2013) 247 final 

2013/0130 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 691/2011 on European environmental economic accounts

(Text with EEA relevance) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Regulation  (EU)  No  691/2011  on  European  environmental  economic  accounts  was  adopted 
on  6  July  2011.  It  covers  three  modules:  air  emissions  accounts,  environmental  taxes  and 
material flow accounts.  

Article  10  of  the  Regulation  contains  a  list  of  possible  new  modules  to  be  introduced  later 
based on Commission proposals. The first three of the new modules listed in Article 10 are 
covered  by 
this  draft  amending  Regulation:  environmental  protection  expenditure, 
environmental goods and services sector and energy accounts.  

Users  put  much  emphasis  on  analysis  and  applications  of  environmental  accounts  in 
modelling  and  outlooks,  both  for  preparing  policy  proposals  and  reporting  on  policy 
implementation and impacts. The new modules will allow expanding the integrated datasets 
available for such applications and analysis.  

Article  4  of  the  Regulation  foresees  pilot  studies  to  be  carried  out  by  Member  States  on  a 
voluntary basis to test the feasibility of introducing new modules. Several such pilot studies 
have been completed clearly demonstrating the feasibility of the three new modules. 

Environmental  accounting  uses  existing  data  for  compiling  the  accounts.  No  new  data 
collection  is  necessary  for  implementing  the  new  modules.  Better  use  of  information  from 
existing data collection instruments will be made. 

The  United  Nations  Statistical  Commission  has  adopted  the  System  of  Environmental-
Economic  Accounting  (SEEA)  as  an  international  statistical  standard  at  its  43rd  session  in 
February 2012. The new modules proposed are fully in line with the SEEA. 

The  proposed  amending  Regulation  is  in  line  with  the  revised  European  Strategy  for 
Environmental  Accounting  (ESEA  2008).  It  will  ensure  that  NSIs  (National  Statistical 
Institutes)  can  expand  their  work  on  environmental  accounting,  with  the  main  objective  of 
providing harmonised and timely data of good quality. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The proposal has been discussed, in the framework of the European Statistical System, with 
data producers and users on a technical level through written consultations, in task forces, in 
the relevant working groups on Environmental Accounts and on Environmental Expenditure 
Statistics in March 2012, and with the directors for environmental statistics and accounts in 
April and November 2012. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

The  objective  of  this  proposed  amending  act  is  to  ensure  international  comparability  of 
environmental  economic  accounts  by  extending  the  coverage  of  Regulation  691/2011  to 
further modules as listed in Article 10 of that Regulation. 

The  proposed  act  concerns  an  EEA  matter  and  should  therefore  extend  to  the  European 
Economic Area. 

4. 

BUDGETARY IMPLICATION 

The proposal has no new implication for the Union budget. 

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2013/0130 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 691/2011 on European environmental economic accounts 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 338(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

Decision No xxx of the European Parliament and of the Council of xxx 2013 laying 
down the Seventh  Community Environment Action Programme1 provides that  sound 
information  on  the  key  trends,  pressures  and  drivers  for  environmental  change  is 
essential  for  the  development  of  effective  policy,  its  implementation,  and  the 
empowerment  of  citizens  more  generally.  Instruments  should  be  developed  with  a 
view to enhancing public awareness of the environmental effects of economic activity.  

Article 10 of Regulation (EU) No  691/2011 invites the  Commission to report  on the 
implementation of this Regulation to the European Parliament and the Council and, if 
appropriate,  to  propose  the  introduction  of  new  environmental  economic  accounts 
modules, 
and  Revenues 
as  Environmental  Protection  Expenditure 
(EPER)/Environmental  Protection  Expenditure  Accounts  (EPEA),  Environmental 
Goods and Services Sector (EGSS) and Energy Accounts.  

such 

These three new modules contribute directly to the Union's policy priorities of green 
growth and resource efficiency by providing important information on indicators such 
as  market  output  and  employment  in  the  EGSS,  national  envirionmental  protection 
expenditure and the use of energy in a detailed NACE breakdown. 

The  United  Nations  Statistical  Commission  adopted  the  System  of  Environmental-
Economic  Accounting  (SEEA)  central  framework  as  an  international  statistical 
standard at its 43rd session in February 2012. The new modules proposed are fully in 
line with the SEEA. 

The European Statistical System Committee has been consulted, 

Regulation (EU) No 691/2011 should therefore be amended accordingly, 

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OJ L xxx. 

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HAVE ADOPTED THIS REGULATION: 

Regulation (EU) No 691/2011 is amended as follows: 

1.  In Article 2, the following points are added: 

Article 1 

‘(4)  ‘environmental  protection  expenditure’  means  the  economic  resources  devoted  by 
resident  units  to  environmental  protection.  Environmental  protection  includes  all  activities 
and  actions  which  have  as  their  main  purpose  the  prevention,  reduction  and  elimination  of 
pollution as well as any other degradation of the environment. This includes measures taken 
in  order  to  restore  the  environment  after  it  has  been  degraded.  Activities  which,  while 
beneficial  to  the  environment,  primarily  satisfy  technical  needs  or  the  internal  requirements 
for hygiene or security of an enterprise or other institution are excluded; 

(5) ‘environmental goods and services sector’ means those production activities of a national 
economy  that  generate  environmental  products.  Environmental  products  are  products  that 
have  been  produced  for  the  purpose  of  environmental  protection  and  resource  management. 
Resource management includes the preservation, maintenance and enhancement of the stock 
of natural resources and hence safeguarding against depletion; 

(6)  ‘physical  energy  flow  accounts’  means  consistent  compilations  of  the  physical  energy 
flows  into  national  economies,  the  flows  within  the  economy  and  the  outputs  to  other 
economies or to the environment.’ 

2.  In Article 3(1), the following points are added: 

‘(d) a module for environmental protection expenditure accounts, as set out in Annex IV; 

(e) a module for environmental goods and services sector accounts, as set out in Annex V; 

(f) a module for physical energy flow accounts, as set out in Annex VI.’ 

3.  Article 8(2) is replaced by the following: 

‘2. 
For the purposes of obtaining a derogation under paragraph 1 for Annexes I, 
II and III, the Member State concerned shall present a duly justified request to the 
Commission  by  12  November  2011.  For  the  purposes  of  obtaining  a  derogation 
under  paragraph  1  for  Annexes  IV,  V  and  VI,  the  Member  State  concerned  shall 
present a duly justified request to the Commission by […2.]’ 

4.  The Annex to this Regulation is added as Annexes IV, V and VI to Regulation (EU) No 

691/2011. 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 2 

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OJ: please insert date - three months after the entry into force of this amending Regulation. 

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This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX  

‘ANNEX IV 

MODULE FOR ENVIRONMENTAL PROTECTION EXPENDITURE ACCOUNTS 

Section 1 

OBJECTIVES 

Environmental protection expenditure accounts present data, in a way that is fully compatible 
with  the  data  reported  under  ESA,  on  the  expenditure  for  environmental  protection,  i.e.  the 
economic  resources  devoted  by  resident  units  to  environmental  protection.  The  accounts 
allow compiling the national expenditure for environmental protection (EP) which is defined 
as the sum of uses of EP services by resident units, gross fixed capital formation (GFCF) for 
EP  activities,  and  transfers  for  EP  which  are  not  a  counterpart  of  previous  items,  less 
financing by the rest of the world. 

The environmental protection expenditure accounts should  make  use of  the already existing 
information from the national accounts (production and generation of income accounts; GFCF 
by  NACE,  supply  and  use  tables;  data  according  to  the  classification  of  functions  of 
government), structural business statistics, business register and other sources. 

This  Annex  defines  the  data  to  be  collected,  compiled,  transmitted  and  evaluated  for 
environmental protection expenditure accounts by the Member States. 

Section 2 

COVERAGE 

Environmental protection expenditure accounts have the same system boundaries as ESA and 
show  environmental  protection  expenditure  for  principal,  secondary  and  ancillary  activities. 
The following sectors are covered: 

– 

– 

– 

general government (including Non-Profit Institutions serving Households) and 
corporations  as 
institutional  sectors  producing  EP  services.  Specialist 
producers produce EP services as their principal activity, 

households, general government and corporations as consumers of EP services, 

the  rest  of  the  world  as  beneficiary  or  origin  of  transfers  for  environmental 
protection. 

Section 3 

LIST OF CHARACTERISTICS 

Member States shall produce environmental protection expenditure accounts according to the 
following characteristics which are defined in accordance with ESA:  

– 

– 

– 

– 

output of environmental protection services. Market output, non-market output 
and output of ancillary activities are distinguished, 

intermediate  consumption  of  environmental  protection  services  by  specialist 
producers, 

imports and exports of environmental protection services, 

VAT  and  other  taxes  less  subsidies  on  products  on  environmental  protection 
services, 

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– 

– 

– 

gross  fixed  capital  formation  and  acquisitions  less  disposals  of  non-financial 
non-produced assets for the production of environmental protection services, 

final consumption of environmental protection services, 

environmental protection transfers (received/paid).  

All data shall be reported in million national currency.  

Section 4 

FIRST REFERENCE YEAR; FREQUENCY AND TRANSMISSION DEADLINES 

1. Statistics shall be compiled and transmitted on a yearly basis.  

2. Statistics shall be transmitted within 24 months of the end of the reference year.  

3.  In  order  to  meet  user  needs  for  complete and  timely datasets,  the Commission (Eurostat) 
shall produce, as soon as sufficient country data becomes available, estimates for the EU-27 
totals  for  the  main  aggregates  of  this  module.  The  Commission  (Eurostat)  shall,  wherever 
possible,  produce  and  publish  estimates  for  data  that  have  not  been  transmitted  by  Member 
States within the deadline specified in point 2.  

4. The first reference year is the year in which this Regulation enters into force.  

5.  In  the  first  data  transmission,  Member  States  shall  include  annual  data  from  2013  to  the 
first reference year.  

6.  In  each  subsequent  data  transmission  to  the  Commission,  Member  States  shall  provide 
annual data for the years n-3, n-2, n-1 and n, where n is the reference year. 

Section 5 

REPORTING TABLES 

1. For the characteristics referred to in Section 3, data shall be reported in a breakdown by: 

– 

– 

types of producers/consumers of environmental protection services as defined 
in section 2, 

classes  of  the  classification  of  environmental  protection  activities  (CEPA) 
aggregated as follows: 

For  general  government  non-market  activities  and  for  environmental  protection 
transfers: 

– 

– 

– 

– 

– 

CEPA 2 

CEPA 3 

Sum of CEPA 1 + 4 + 5 + 7 

CEPA 6 

Sum of CEPA 8 + 9  

For ancillary activities of corporations: 

– 

– 

– 

– 

CEPA 1 

CEPA 2 

CEPA 3 

Sum of CEPA 4 + 5 + 6 + 7 + 8 + 9 

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For corporations as secondary and specialised producers: 

– 

– 

– 

CEPA 2 

CEPA 3 

CEPA 4 

For households as consumers: 

– 

– 

CEPA 2 

CEPA 3 

– 

The following NACE codes for the ancillary production of EP services: NACE 
Rev. 2 B, C, D, division 36. Data for section C shall be presented by divisions. 
Divisions  10-12,  13-15  and  31-32  shall  be  grouped  together.  Member  States 
which according to Regulation (EC) No 295/20083 of the European Parliament 
and  of  the  Council  (as  regards  the  definitions  of  characteristics,  the  technical 
format  for  the  transmission  of  data,  the  double  reporting  requirements  for 
NACE Rev. 1.1 and NACE Rev. 2 and derogations to be granted for structural 
business  statistics)  are  not  obliged  to  collect  environmental  protection 
expenditure data for one or more of these NACE codes do not need to provide 
data for these NACE codes. 

2. The CEPA classes referred to in paragraph 1 are as follows: 

CEPA 1 - Protection of ambient air and climate 

CEPA 2 - Wastewater management 

CEPA 3 - Waste management 

CEPA 4 - Protection and remediation of soil, groundwater and surface water 

CEPA 5 - Noise and vibration abatement 

CEPA 6 - Protection of biodiversity and landscapes 

CEPA 7 - Protection against radiation 

CEPA 8 – Environmental research and development  

CEPA 9 - Other environmental protection activities. 

Section 6 

MAXIMUM DURATION OF THE TRANSITIONAL PERIODS 

For  the  implementation  of  the  provisions  of  this  Annex,  the  maximum  duration  of  the 
transitional period is 2 years from the first transmission deadline. 

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OJ L 97, 9.4.2008, p. 13-59. 

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MODULE FOR THE ENVIRONMENTAL GOODS AND SERVICES SECTOR 

ANNEX V 

Section 1 

OBJECTIVES 

Statistics  on  environmental  goods  and  services  record  and  present  data  on  national 
economies’ production activities that generate environmental products in a way that is fully 
compatible with the data reported under ESA. 

This  Annex  defines  the  data  to  be  collected,  compiled,  transmitted  and  evaluated  for 
environmental goods and services by the Member States. 

Section 2 

COVERAGE 

The  environmental  goods  and  services  sector  has  the  same  system  boundaries  as  ESA  and 
consists  of  all  environmental  goods  and  services  that  are  created  within  the  production 
boundary.  ESA  defines  production  as  the  activity  carried  out  under  the  control  and 
responsibility of an institutional unit that uses inputs of labour, capital and goods and services 
to produce goods and services. 

Environmental goods and services fall within the following categories: environmental specific 
services,  environmental  sole  purpose  products  (connected  products),  adapted  goods  and 
environmental technologies.  

Section 3 

LIST OF CHARACTERISTICS 

Member  States  shall  produce  statistics  on  the  environmental  goods  and  services  sector 
according to the following characteristics: 

– 

market output, of which: 

– 

exports 

– 

– 

value added of market activities 

employment of market activities. 

All  data  shall  be  reported  in  million  national  currency,  except  for  the  characteristic 
‘employment’ for which the reporting unit should be full time equivalent. 

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Section 4 

FIRST REFERENCE YEAR; FREQUENCY AND TRANSMISSION DEADLINES 

1. Statistics shall be compiled and transmitted on a yearly basis. 

2. Statistics shall be transmitted within 24 months of the end of the reference year. 

3.  In  order  to  meet  user  needs  for  complete and  timely datasets,  the Commission (Eurostat) 
shall produce, as soon as sufficient country data becomes available, estimates for the EU-27 
totals  for  the  main  aggregates  of  this  module.  The  Commission  (Eurostat)  shall,  wherever 
possible,  produce  and  publish  estimates  for  data  that  have  not  been  transmitted  by  Member 
States within the deadline specified in point 2. 

4. The first reference year is the year in which this Regulation enters into force. 

5.  In  the  first  data  transmission,  Member  States  shall  include  annual  data  from  2013  to  the 
first reference year. 

6.  In  each  subsequent  data  transmission  to  the  Commission,  Member  States  shall  provide 
annual data for the years n-3, n-2, n-1 and n, where n is the reference year. 

Section 5 

REPORTING TABLES 

1. For the characteristics referred to in Section 3, data shall be reported cross-classified by: 

– 

– 

classification of economic activities, NACE Rev. 2 (A*21 aggregation level as 
set out in ESA), 

classes of the classification of environmental protection activities (CEPA) and 
the  classification  of  resource  management  activities  (CReMA)  grouped  as 
follows: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

CEPA 1 

CEPA 2 

CEPA 3 

CEPA 4 

CEPA 5 

CEPA 6 

Sum of: CEPA 7, CEPA 8 and CEPA 9 

CReMA 10 

CReMA 11 

CReMA 13 

– 

– 

CReMA 13A 

CReMA 13B 

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– 

CReMA 13C 

CReMA 14 

Sum of: CReMA 12, CReMA 15 and CReMA 16 

– 

– 

2.  The  CEPA  classes  referred  to  in  paragraph  1  are  as  set  out  in  Annex  IV.  The  CReMA 
classes referred to in paragraph 1 are as follows: 

CReMA 10 – Management of water  

CReMA 11 – Management of forest resources 

CReMA 12 – Management of wild flora and fauna 

CReMA 13 – Management of energy resources 

CReMA 13A – Production of energy from renewable resources 

CReMA 13B – Heat/energy saving and management 

CReMA 13C – Minimisation of the use of fossil energy as raw materials 

CReMA 14 – Management of minerals 

CReMA 15 – Research and development activities for resource management 

CReMA 16 – Other resource management activities 

Section 6 

MAXIMUM DURATION OF THE TRANSITIONAL PERIODS 

For  the  implementation  of  the  provisions  of  this  Annex,  the  maximum  duration  of  the 
transitional period is 2 years from the first transmission deadline. 

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ANNEX VI 

MODULE FOR PHYSICAL ENERGY FLOW ACCOUNTS 

Section 1 

OBJECTIVES 

Physical  energy  flow  accounts  present  data  on  the  physical  flows  of  energy  expressed  in 
terajoules  in  a  way  that  is  fully  compatible  with  the  concepts,  principles,  and  data  reported 
under  the  European  System  of  Accounts  (ESA).  They  record  energy  data  in  relation  to  the 
economic  activities  of  resident  units  of  national  economies  in  a  breakdown  by  economic 
activity. They present the supply and use of natural energy inputs, energy products and energy 
residuals. Economic activities comprise production, consumption, and accumulation. 

Section 2 

COVERAGE 

Physical energy flow accounts have the same system boundaries as ESA and are also based on 
the residence principle. 

In accordance with ESA, a unit is said to be a resident unit of a country when it has a centre of 
economic  interest  in  the  economic  territory  of  that  country,  that  is,  when  it  engages  for  an 
extended period (1 year or more) in economic activities in that territory. 

Physical energy flow accounts record physical energy flows arising from the activities of all 
resident units, regardless of where these flows actually occur geographically. 

Physical energy flow accounts record the physical flows of energy from the environment to 
the economy, within the economy, and from the economy back to the environment. 

Section 3 

LIST OF CHARACTERISTICS 

Member  States  shall  produce  physical  energy  flow  accounts  according  to  the  following 
characteristics:  

– 

the physical energy flows grouped into three generic categories: 

– 

– 

– 

(i) natural energy inputs, 

(ii) energy products,  

(iii) energy residuals. 

– 

– 

the  origin  of  the  physical  energy  flows,  grouped  into  five  categories: 
production, consumption, accumulation, rest of the world and environment, 

the destination of the physical flows, grouped into the same five categories as 
the origin of the physical energy flows. 

All data shall be reported in terajoules. 

Section 4 

FIRST REFERENCE YEAR; FREQUENCY AND TRANSMISSION DEADLINES 

1. Statistics shall be compiled and transmitted on a yearly basis.  

2. Statistics shall be transmitted within 18 months of the end of the reference year.  

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3.  In  order  to  meet  user  needs  for  complete and  timely datasets,  the Commission (Eurostat) 
shall produce, as soon as sufficient country data becomes available, estimates for the EU-27 
totals  for  the  main  aggregates  of  this  module.  The  Commission  (Eurostat)  shall,  wherever 
possible,  produce  and  publish  estimates  for  data  that  have  not  been  transmitted  by  Member 
States within the deadline specified in point 2. 

4. The first reference year is the year in which this Regulation enters into force.  

5.  In  the  first  data  transmission,  Member  States  shall  include  annual  data  from  2013  to  the 
first reference year.  

6.  In  each  subsequent  data  transmission  to  the  Commission,  Member  States  shall  provide 
annual data for the years n-3, n-2, n-1 and n, where n is the reference year. 

Section 5 

REPORTING TABLES 

1. For the characteristics referred to in Section 3, the following data shall be reported: 

– 

– 

– 

– 

– 

Supply table for energy flows in physical units. This table records the supply of 
natural  energy  inputs,  energy  products,  and  energy  residuals  (row-wise)  by 
origin, i.e. ‘supplier’ (column-wise). 

Use table for energy flows. This table records the use of natural energy inputs, 
energy  products,  and  energy  residuals  (row-wise)  by  destination,  i.e.  ‘user’ 
(column-wise). 

Table  of  emission-relevant  use  of  energy  flows.  This  table  records  the 
emission-relevant use of natural energy inputs and energy products (row-wise) 
by the using and emitting unit (column-wise). 

Key  energy  indicator  ‘total  energy  consumption  by  resident  units’'  in  a 
breakdown by industries and households. 

Bridge  table  showing  the  various  elements  which  make  up  the  difference 
between  the  key  energy  indicator  ‘total  energy  use  by  resident  units’  and  the 
common key energy indicator as presented by European energy statistics ‘gross 
inland energy consumption’. 

2.  The  supply  and  use  tables  of  energy  flows  (including  emission-relevant  flows)  have  a 
common layout in terms of rows and columns. 

3.  The  columns  denote  the  origins  (supply)  or  destinations  (use)  of  the  physical  flows.  The 
columns are grouped into five categories: 

– 

– 

– 

– 

– 

‘Production’  relates  to  the  production  of  goods  and  services.  Production 
activities are classified according to NACE Rev. 2 and data is reported in A*64 
aggregation level. 

‘Consumption’  activities  are  presented  in  one  column  for  private  households' 
final consumption. 

‘Accumulation’  refers  to  the  changes  in  stocks  of  energy  products  within  the 
economy.  

‘Rest of the world’ records the flows of imported and exported products.  

‘Environment’ records the origin of natural input flows and the destination of 
residual flows. 

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4. The rows describe the type of physical flows classified as in first bullet point of section 3. 

5.  The  classification  of  natural  energy  inputs,  energy  products,  and  energy  residuals  is  as 
follows: 

– 

– 

– 

Natural energy inputs are grouped into non-renewable natural energy inputs 
and renewable natural energy inputs.  

Energy  products  are  grouped  according  to  the  classification  of  products  by 
activity (CPA) and the classification used in European energy statistics. 

Energy  residuals  include  waste  (without  monetary  value);  losses  during 
extraction/abstraction,  distribution/transport,  transformation/conversion  and 
storage; as well as balancing items to balance the supply and use tables. 

6.  The  ‘bridge’  from  the  residence  principle  indicator  to  the  territory  based  indicator  is 
presented  for  the  entire  national  economy  (no  breakdown  by  industries)  and  is  obtained  as 
follows: 

total energy use by resident units 

– energy use by resident units abroad 

+ energy use by non-residents on the territory 

= gross inland energy consumption (territory based) 

Section 6 

MAXIMUM DURATION OF THE TRANSITIONAL PERIODS 

For  the  implementation  of  the  provisions  of  this  Annex,  the  maximum  duration  of  the 
transitional period is 2 years from the first transmission deadline.’ 

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