Fostering the coherence of Environmental-Economic Accounting and extending by Environmental Subsidies and Similar Transfers (ESST) and Potentially Environmentally Damaging Subsidies (PEDS) - Project report

Environmental subsidies and similar transfers are important economic instruments for achieving environmental policy objectives by incentivising environmentally beneficial behaviour and activities. As part of an Eurostat grant project, a reporting framework for these transfers was developed and implemented for the reference year 2018. Its methodology is consistent with current EU guidelines, frameworks and classifications (e.g. ESA 2010) and thus provides comparable results at the European level. However, subsidies are also paid for activities that have potentially negative impacts on the environment. A concept for the reporting of such potentially environmentally damaging subsidies was developed and implemented for 2018 as well. These new and the already existing environmental-economic accounts in Germany overlap with respect to their methodologies and data sources. Integrated compilation processes based on these overlaps were conceptually developed and, in some instances, technically implemented for 2018. This report details the results and findings of the Eurostat grant project.