Glossary

Aichi Targets

[Chapter Biodiversity, ecosystems and wildlife resources]

In 2010, the Parties to the Convention on Biological Diversity (CBD) adopted a revised and updated Strategic Plan for Biodiversity, including the Aichi Biodiversity Targets, for the 2011-20 period (Nagoya, Aichi Prefecture, Japan). The 20 headline targets are grouped under five strategic goals: i) address the underlying causes of biodiversity loss by mainstreaming biodiversity across government and society; ii) reduce the direct pressures on biodiversity and promote sustainable use; iii) improve the status of biodiversity by safeguarding ecosystems, species and genetic diversity; iv) enhance the benefits to all from biodiversity and ecosystem services; and v) enhance implementation through participatory planning, knowledge management and capacity building. For more information see: www.cbd.int/sp/targets/.

Air pollution by nitrogen dioxide

[Chapter Air pollution, health risks and costs]

Nitrogen dioxide (NO₂) is one of a group of highly reactive gases known as oxides of nitrogen or nitrogen oxides (NO_x). Other gases belonging to this group are nitric oxide (NO), nitrogen monoxide (or nitrous oxide, N₂O), and nitrogen pentoxide (NO₅). NO₂ is used as the indicator for the larger group of nitrogen oxides. NO₂ is also the main source of nitrate aerosols, which form an important fraction of PM_2.5 and, in the presence of ultraviolet light, of ozone. NO₂ emissions primarily stem from the burning of fuel (motor vehicles, power plants, heating equipment, etc.). Breathing air with a high concentration of NO₂ can irritate airways in the human respiratory system. Exposures over short periods can aggravate respiratory diseases, particularly asthma, leading to respiratory symptoms (such as coughing, wheezing or difficulty breathing). Longer exposures to high concentrations of NO₂ may contribute to the development of asthma and potentially increase susceptibility to respiratory infections. People with asthma, as well as children and the elderly, are generally at greater risk. For further information see: WHO (2016), Ambient air quality and health factsheet: www.who.int/mediacentre/factsheets/fs313/en/; and USEPA (2016), NO₂ Pollution. www.epa.gov/no2-pollution.

Air pollution by ozone

[Chapter Air pollution, health risks and costs]

Ozone (O₃) at ground level – not to be confused with the ozone layer in the upper atmosphere – is one of the major constituents of photochemical smog. It is a secondary pollutant formed by the reaction with sunlight (photochemical reaction) of pollutants such as nitrogen oxides (NO_x) from motor vehicles, heating and industry, and volatile organic compounds (VOCs) from motor vehicles, solvents and industrial processes. The highest levels of ozone pollution thus occur during periods of sunny weather. Unlike other pollutants, concentrations of O₃ in rural areas tend to be higher than in urban areas. This is due to pollution transport by wind and to ozone degradation by NO_x from vehicle exhausts in urban traffic-heavy areas. Acute exposures (short-term exposure to high concentrations) are most relevant from a health impact perspective. Excessive ozone in the air can have a marked effect on human health. It can cause breathing problems, trigger asthma, reduce lung function and cause lung diseases. For further information see: WHO (2016), Ambient air quality and health factsheet: www.who.int/mediacentre/factsheets/fs313/en/.

Air pollution by particulates

[Chapter Air pollution, health risks and costs]

The major components of particulate matter (PM) are sulphate, nitrates, ammonia, sodium chloride, black carbon, mineral dust and water. PM consists of a complex mixture of solid and liquid particles of organic and inorganic substances suspended in the air. Small particulates are suspended particulates of less than 10 μm in diameter (PM₁₀) that can penetrate deep into the respiratory tract, causing significant health damage. Chronic exposure to small particulates contributes to the risk of developing cardiovascular and respiratory diseases, as well as lung cancer. Fine particulates, smaller than 2.5 microns in diameter (PM_2.5), cause even more severe health effects. First, they penetrate deeper into the respiratory tract. Second, they are potentially more toxic as they may include heavy metals and toxic organic substances. There is a close, quantitative relationship between exposure to high concentrations of particulates (PM₁₀ and PM_2.5) and increased mortality or morbidity, both daily and over time.

The data presented in the report are estimates for chronic outdoor exposure to PM_2.5. Internationally comparable measures of average PM_2.5 concentrations are derived from satellite observations, chemical transport models and ground monitoring stations. These estimates include pollutants from both anthropogenic and natural sources. Population exposure to air pollution is calculated by weighting concentrations with populations in each cell of the underlying gridded data. Pollution concentrations in densely populated cities will thus carry a bigger weight than pollution in sparsely populated rural areas. This is important to help direct policy action to places where potential health impacts are highest.

There is a possibility of over-estimates or under-estimates in certain locations. While satellite observations are less precise than in-situ monitoring, the two data sources are complementary. They allow estimates of concentrations in locations not covered by ground monitoring networks; they also improve the comparability of estimates between different locations. Concentration estimates derived from satellite observations and modelling may however differ from the concentrations actually measured by national ground monitoring networks.

Budgetary support and tax expenditure for fossil fuel use

[Chapter Taxes and subsidies]

Information on fossil-fuel support is available from the OECD Inventory of Support Measures for Fossil Fuels. The OECD Inventory takes stock of the broad set of measures identified by governments that effectively support fossil-fuel use or production. These terms are defined using the PSE-CSE framework, which has already been used extensively to measure support to other activities, most notably agriculture. The scope of “support” is deliberately broad – broader than some conceptions of “subsidy”. It covers a wide range of measures that provide a benefit or preference for a particular activity or product, either in absolute terms or relative to other activities or products. The total support estimate (TSE) includes both direct budgetary transfers and tax expenditures that provide a benefit or preference for fossil fuels relative to other alternatives. It encompasses Producer Support Estimates (PSE), Consumer Support Estimates (CSE), and the General Services Support Estimate (GSSE). Data are also presented by broad fuel category (petroleum, coal and natural gas). Data in the Inventory were sourced from official government documents and websites, complemented by information provided directly by government agencies. The charts presented are based on an arithmetic sum of the individual support measures identified for OECD countries, excluding Latvia and Iceland. They include the value of tax relief measured under each jurisdiction’s benchmark tax treatment. The estimates do not consider interactions that might occur if multiple measures were to be removed at the same time.

Clean Development Mechanism projects

[Chapter International financial flows]

The Clean Development Mechanism (CDM) is one of the Flexible Mechanisms defined in the Kyoto Protocol (IPCC, 2007). It allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. CDM projects can earn saleable certified emission reduction (CER) credits, which can be counted towards meeting Kyoto targets. The data on CDM projects refer to the total number of CDM-registered projects in the pipeline. Rejected projects are excluded, as are projects where validation has been terminated.

Composition of value added

[Chapter Progress towards green growth: An overview]

Value added in agriculture, industry and services are expressed as a percentage of total value added. Agriculture corresponds to ISIC Rev.3 divisions 1-5 and includes forestry, hunting as well as cultivation of crops and livestock production. Value added in industry corresponds to ISIC Rev.3 divisions 10-45 and includes value added in mining, manufacturing, construction, electricity, water, and gas. Value added in services corresponds to ISIC Rev.3 divisions 50-99 and includes value added in wholesale and retail trade (including hotels and restaurants), transport, and government, financial, professional, and personal services such as education, health care, real estate services as well as financial intermediation.

The data on value added come from the Aggregate National Accounts: Gross domestic product dataset of the OECD National Accounts Statistics Database, complemented with value added data from the World Bank’s World Development Indicators.

Cycads

[Chapter Biodiversity, ecosystems and wildlife resources]

Cycads are palm-like seed plants of subtropical and tropical regions bearing large male or female cones. They grow very slowly and live very long. Cycads are the most ancient seed plants still living today, with fossils that date to the late Carboniferous period some 300-325 million years ago.

Demand-based CO₂ productivity

[Chapter Carbon productivity]

Demand-based CO₂ productivity is defined as the economic value, in terms of GDP (or real national income), generated per unit of CO₂ emitted to satisfy final demand. It is calculated as GDP per unit of demand-based CO₂ emissions (USD/kg). Demand-based emissions reflect the CO₂ from energy use emitted during the various stages of production of goods and services consumed in domestic final demand, irrespective of where the stages of production occurred. Trends in emissions on this basis thus complement the more conventional production-based measures. GDP is expressed at constant 2010 USD using PPPs.

The estimates of CO₂ emissions embodied in final domestic demand are obtained from the OECD dataset on Carbon Dioxide Embodied in International Trade, derived from the OECD Input-Output Database. The estimates are calculated for 61 countries (with an input-output table modelled for the “rest of the world”) using IEA data on CO₂ emissions from fuel combustion (2014) and the OECD Inter-Country Input-Output (ICIO) system (Edition 2015). Using information from both, emission-intensities of production are calculated for each industry in each country. These intensities are then combined with the Leontief inverse of the ICIO system to get emission multipliers for final demand. This can be used to allocate the flows of CO₂ emitted in producing a product; it does not matter how many intermediate processes and countries the product passes through before arriving to its final purchaser. For a more detailed description of the methodology, please consult: http://oe.cd/io-co2.

Effective carbon rates

[Chapter Taxes and subsidies]

Effective carbon rates are expressed in EUR per tonne of CO₂. They represent the price that applies to CO₂ emissions from energy use as a result of i) CO₂ taxes (i.e. based on the carbon content), ii) specific taxes on energy use (primarily excise taxes), typically set per unit of energy, which can be translated into effective tax rates on the carbon content of each form of energy and iii) the price of tradable emission permits, regardless of the permit allocation method, representing the opportunity cost of emitting an extra unit of CO₂.

The “carbon pricing gap” is presented as a synthetic indicator. It shows the extent to which effective carbon rates fall short of pricing emissions at EUR 30 per tonne of CO₂. Data for OECD and BRIICS are the averages weighted by the level of CO₂ emissions from the respective sector. The OECD total does not include Latvia, as the country became a member of the OECD after the calculations were carried out.

The indicators cover the road sector and non-road energy sectors. The road sector includes only energy used in road transport; non-road energy sectors include: i) Off-road transport (incl. pipelines, rail transport, domestic aviation, and maritime transport); ii) Industry: industrial processes, heating (inside industrial installations) and transformation of energy (incl. fuels used for auto-generation of electricity in industrial installations); iii) Agriculture & fisheries (incl. agriculture, fisheries and forestry); iv) Residential and commercial (incl. energy used for commercial and residential heating (incl. fuels used for auto-generation of electricity); v) Electricity (incl. energy used to generate electricity for domestic use, excluding fuels used in the auto-generation of electricity). For more details see OECD (2016) Effective carbon rates: Pricing CO₂ through Taxes and Emissions Trading Systems.

Energy consumption

[Chapter Energy productivity]

Energy consumption is expressed in tonnes of oil equivalent. Final consumption reflects for the most part deliveries to consumers. It excludes energy used for transformation processes and for own use of the energy-producing industries. Energy consumption is specified by sectors.

• Consumption in agriculture includes deliveries to users classified as agriculture, hunting and forestry by the International Standard Industrial Classification (ISIC).Therefore, it includes energy consumed by such users whether for traction (excluding agricultural highway use), power or heating (agricultural and domestic) [ISIC Rev.4 Divisions 01 and 02].

• Consumption in services includes both commercial and public services [ISIC Rev.4 Divisions 33, 36-39, 45-47, 52, 53, 55-56, 58-66, 68-75, 77-82, 84 (excluding Class 8422), 85-88, 90-96 and 99].

• Consumption in transport covers all transport activity (in mobile engines) regardless of the economic sector to which it is contributing [ISIC Rev.4 Divisions 49 to 51].

• Consumption in Industry includes the following sub-sectors: iron and steel, chemical and petrochemical, non-ferrous metals, non-metallic minerals, transport equipment, machinery, mining and quarrying, food and tobacco, paper, pulp and print, wood and wood products, construction, textile and leather together with any manufacturing industry not included above.

• Consumption in the category other includes residential consumption and all fuel use not elsewhere specified.

Energy productivity

[Chapter Energy productivity]

Energy productivity is defined as the economic output, in terms of GDP, generated per unit of primary energy used. It is calculated as GDP per unit of Total Primary Energy Supply (TPES) (USD/toe), the inverse of energy intensity. This indicator reflects, at least partly, efforts to reduce carbon and other atmospheric emissions as well as structural and climatic factors. GDP is expressed at constant 2010 USD using PPPs.

Energy supply

[Chapter Energy productivity]

Total primary energy supply (TPES) is expressed in tonnes of oil equivalent (toe). It comprises indigenous production + imports – exports – international marine bunkers – international aviation bunkers ± stock changes. Primary energy sources include fossil fuels (coal, oil shale, peat and peat products, oil and natural gas), biofuels and waste, nuclear, hydro, geothermal, solar and the heat from heat pumps that is extracted from the ambient environment.

Environmental goods and services sector (EGSS)

[Chapter Markets for environmentally related products]

The Environmental goods and services sector is defined as comprising activities to measure, control, restore, prevent, treat, minimise, research and sensitise regarding environmental damage to air, water and soil, resource depletion and problems related to waste, noise, biodiversity and landscapes. The definition includes cleaner and resource-efficient technologies, goods and services, which prevent or minimise pollution, and minimise natural resource use. The scope of the EGS sector is defined according to the classification of environmental protection activities (CEPA) and the classification of resource management activities (CReMA).

The methodological reference is the 2009 Eurostat handbook that has been integrated in the Central Framework of the SEEA, and that builds on earlier work carried out jointly by the OECD and Eurostat (OECD and Eurostat, 1999). The handbook provides guidance to statistical offices in the collection of data on turnover, value added, employment and exports of the EGS sector.

Despite existing definitions and guidelines, setting the boundaries of the EGS sector remains a difficult task, as does its measurement and interpretation. The definition above is essentially a product-based definition. It brings together enterprises producing goods or technologies whose main purpose is environmental. Identifying the main purpose of a technology or product is often difficult so some arbitrariness cannot be avoided. The EGS sector is highly diverse and includes both government and corporate producers. A given production unit may find some of its activities meeting the definition, but not all.

Data on the EGS sector in the European Union result from a data collection by Eurostat and include estimates. They do not cover all resource management activities. For example, the management of forest resources and of wildlife, as well as R&D for resource management are not included. The employment in environmental protection and resource management activities is measured by the full-time equivalent (FTE) jobs engaged in the production of the environmental output. It is defined as total hours worked divided by average annual hours worked in full-time jobs.

Environmentally adjusted multifactor productivity (EAMFP)

[Chapter Environmentally adjusted multifactor productivity]

Environmentally adjusted multifactor productivity (EAMFP) is measured using a growth accounting framework that includes labour, produced capital and natural capital as factor inputs, and pollution as undesirable by-product. Growth accounting allows decomposing output growth (here GDP growth adjusted for pollution abatement) into the growth contribution of labour, produced capital and natural capital. EAMFP growth is then calculated as a residual.

The growth contributions of inputs are calculated as the elasticity-weighted growth rates of individual factor inputs. Labour, produced capital and natural capital are all traded in markets. Therefore, under a profit maximisation approach, the elasticities can be calculated from their cost shares in the economy. The growth contribution of natural capital is calculated using the cost share of natural capital weighted by the growth rate of natural capital extraction. The cost share of natural capital is calculated using the unit rent (i.e. market price of natural capital minus extractions costs).

The elasticities of GDP with respect to pollution are estimated econometrically because pollution does not have an explicit economy-wide price. The growth adjustment for pollution abatement is calculated using the estimated elasticities and the growth rate of pollution emissions.

In growth accounting, inputs and outputs are evaluated from the producers’ perspective. Thus, this framework makes no account of environmental damages and the social costs of pollution.

In this report, the coverage of environmental services in terms of pollution and natural capital inputs remains partial. It is limited to eight greenhouse gases and air pollutants (CO₂, CH₄, N₂O, NMVOC, SO_x, NO_x, CO, PM₁₀) and 14 types of subsoil assets (hard coal, soft coal, gas, oil, bauxite, copper, gold, iron ore, lead, nickel, phosphate, silver, tin and zinc). Data on produced capital, labour and GDP are taken from the OECD Productivity Database complemented with the Conference Board Total Economy Database. Data on natural capital are obtained from the OECD Natural Asset Accounts and the World Bank Wealth Accounting and the Valuation of Ecosystem Services (WAVES) database. Data on air pollutant emisions are taken from the OECD Air Emission Accounts, OECD Air Emissions by Source, OECD Greenhouse Gas Emissions by Source and the Emissions Database for Global Atmospheric Research (EDGAR). Pending better data availability, future work will seek to expand the country coverage and the range of environmental services included. For more details on the underlying methodology, see Cárdenas Rodríguez et al. (2016).

Environmentally related official development assistance (ODA)

[Chapter International financial flows]

The OECD Development Assistance Committee (OECD-DAC) has established a comprehensive system for measuring aid targeting the objectives of the Rio conventions, environment and renewable energy. The data on private flows at market terms, such as bank lending and direct investment, are subject to confidentiality restrictions at the level of individual transactions.

Official development assistance (ODA) by sector refers to annual average disbursements as a share of total sector-allocable aid. The environment protection sector refers to general environmental protection activities. These comprise environmental policy and administrative management, biosphere protection, biodiversity, site preservation, flood prevention/control, environmental education/training and environmental research. In addition, an activity can target environment as a “principal objective” – if it is an explicit objective of the activity and fundamental in its design. It can target environment as a “significant objective” if it is an important, but secondary objective of the activity. The water and sanitation sector refers to water sector policy and administrative management, water resource conservation, water supply and sanitation, basic drinking water supply and basic sanitation, river basin development, waste management/disposal, education and training in water supply and sanitation. Renewable energy resources include power generation from renewable sources: hydroelectric power plants, geothermal energy, solar energy, wind power, ocean power and biomass. Non-renewable energy resources include power generation from: coal, oil, natural gas, and non-renewable waste.

Environmentally related ODA refers to annual commitments. It is expressed as a percentage of total ODA. Environmentally related ODA is identified using all relevant markers in the reporting system (i.e.  the “Environment” marker and the set of “Rio Markers”). This variable includes only data on bilateral commitments. It is calculated by aggregating up from the level of individual projects in order to avoid double-counting.

• ODA commitments identified using the “Environment” marker (activities that target environment as a principal or significant objective) include activities intended to improve the physical and/or biological environment of the recipient country, area or target group concerned. They also include specific action to integrate environmental concerns with a range of development objectives through institution building and/or capacity development. The “Environment” marker was introduced in 1992.

• ODA targeting the objectives of the Rio conventions is identified using “Rio Markers” (activities that target the Rio objectives as a principal or significant objective). The Rio markers screen for policy objectives of a cross-sectoral nature, including climate change, biodiversity and desertification. Data cover OECD-DAC members and refer to commitments expressed in constant 2010 USD, averaged over two years.

  1. Biodiversity-related aid is defined as activities that promote conservation of biodiversity, sustainable use of its components, or fair and equitable sharing of the benefits of the use of genetic resources.

  2. Desertification-related aid is defined as activities that tackle desertification or mitigate the effects of drought.

  3. Climate change mitigation-related aid is defined as activities that strengthen the resilience of countries to climate change and that contribute to stabilisation of greenhouse gas (GHG) concentrations by promoting reduction of emissions or enhancement of GHG sequestration.

  4. Climate change adaptation-related aid is identified using a marker, on which reporting started only in 2010. It is defined as aid in support of climate change adaptation, it complements the climate change mitigation marker. It thus allows presentation of a more complete picture of aid in support of developing countries’ efforts to address climate change.

Net ODA is expressed as a percentage of gross national income (GNI). Net ODA consists of disbursements of loans made on concessional terms (net of repayments of principal) and grants by official agencies of the members of the DAC, and by non-DAC countries. These loans or grants promote economic development and welfare in countries and territories in the DAC list of ODA recipients. Net ODA includes loans with a grant element of at least 25% (calculated at a rate of discount of 10%). A long-standing ODA target is that developed countries should devote 0.7% of their GNI to ODA.

Environmentally related taxes

[Chapter Taxes and subsidies]

Environmentally related taxes include taxes on i) energy products for transport purposes (petrol and diesel) and for stationary purposes (fossil fuels and electricity); ii) motor vehicles and transport (one-off import or sales taxes, recurrent taxes on registration or road use and other transport taxes); iii) other environmentally related taxes, e.g. in relation to waste management (final disposal, packaging and other waste-related product taxes), ozone-depleting substances, measured emissions to air or water, fishing and hunting taxes, and other taxes non-allocated elsewhere. Revenues from auctioning of emission allowances (e.g. from the EU Emissions Trading System) are also part of the “energy tax revenues”. Environmentally related tax revenue is expressed as a percentage of total tax revenue, and compared to GDP. The structure of the tax base is given as a complement.

Road fuel taxes and prices are expressed in constant 2010 USD using PPPs and deflated using the Consumer Price Index. Information is available from the IEA Energy Prices and Taxes Statistics (database). Petrol taxes and prices are calculated as the arithmetic average of the unleaded premium 95, unleaded premium 98, and unleaded regular petrol.

Exclusive economic zone (EEZ)

[Chapter Biodiversity, ecosystems and wildlife resources]

The perimeters of the exclusive economic zone (EEZ) of a country are defined in the 1982 UN Convention of the Law of the Sea. The EEZ extends 200 nautical miles from the coastline, or to the mid-point between coastlines where the EEZ of different countries would otherwise overlap. There are some exceptions to these rules.

Fertiliser consumption

[Chapter Nutrient flows and balances]

Fertilisers are any solid, liquid or gaseous substances containing one or more plant nutrients (such as Nitrogen (N), Phosphorus (P) and Potassium (K), but also Calcium (Ca), Sulphur (S) and Magnesium (Mg)). They comprise inorganic or mineral fertilisers (also called commercial fertilisers, produced by the fertiliser industry) and organic fertilisers such as manure or compost.

Mineral fertilisers, which made their appearance with the industrial revolution, had an important role in sustaining the growing population. Half of the world population is estimated to be fed with crops grown using synthetic fertilisers. Fertilisers can have a negative impact on the environment, leading to eutrophication and pollution of water and soil (e.g. heavy metals, soil acidification and persistent organic pollutants). Also, the production of nitrogenous fertilisers is energy intensive and mineable phosphorus reserves are finite (FAO, 2016).

Fish stocks within safe biological limits

[Chapter Biodiversity, ecosystems and wildlife resources]

Fish stocks within safe biological limits represent the proportion of stocks exploited within their level of maximum biological productivity, i.e. stocks that are underexploited, moderately exploited or fully exploited. Safe biological limits are the precautionary thresholds advocated by the International Council for the Exploration of the Sea. The stocks assessed are classified on the basis of various phases of fishery development: underexploited, moderately exploited, fully exploited, overexploited, depleted and recovering. It is still not possible to determine the status of a large number of stocks. More needs to be done to better evaluate the status of fish stocks and to relate it to captures.

Forest available for wood supply

[Chapter Forest resources]

This refers to forests where there are no environmental, social or economic restrictions that could have a significant impact on the current or potential supply of wood. These restrictions could be based on legal acts, managerial owners’ decisions or other reasons.

Forests under certified sustainable management

[Chapter Forest resources]

This refers to forests under independently verified forest management certification. They include forest areas certified under the Forest Stewardship Council (FSC) certification and the Programme for the Endorsement of Forest Certification (PEFC) schemes. They also include forest areas certified under an international forest management certification scheme with published standards and independently verified by a third-party, excluding FSC and PEFC certification.

Freshwater abstractions

[Chapter Freshwater resources]

Freshwater abstractions refer to water removed from any freshwater resource, either permanently or temporarily. Mine water and drainage water are included. Water used for hydroelectricity generation is an in-situ use and not included. Water abstractions from precipitation (e.g. rain water collected for use) should be included, but rarely covered in national statistics. For some countries, the data refer to water permits and not to actual abstractions.

Freshwater resources

[Chapter Freshwater resources]

Freshwater resources refer to total renewable freshwater resources, i.e. internal flow plus actual external inflow. The internal flow is equal to precipitation less actual evapotranspiration. It represents the total volume of river run-off and groundwater generated, in natural conditions, exclusively by precipitation into a territory. The external inflow is the total volume of the flow of rivers and groundwater coming from neighbouring territories. The data used represent long-term annual averages.

GDP per capita

[Chapter Progress towards green growth: an overview]

The Gross Domestic Product per capita (USD/person) is expressed at constant 2010 USD using PPPs. GDP per capita measures a country’s economic wealth of the population of a nation. However, as a mean value it does not reflect income distribution. Moreover, it is a “gross” measure of income and no account is taken neither of the depreciation of produced assets nor of the depletion of natural assets. For sources of GDP and population data see the Reader’s Guide.

Global wild bird index

[Chapter Biodiversity, ecosystems and wildlife resources]

Birds are seen as a good indicator of the integrity of ecosystems and biological diversity. Being close to or at the top of the food chain, they reflect changes in ecosystems more rapidly than other species.

The global Wild Bird Index (WBI) is an average trend in a group of species suited to track trends in habitat conditions. A decrease in the WBI means the balance of species’ population trends is negative, representing biodiversity loss. If it is constant, there is no overall change. An increase means the balance of species’ trends is positive, implying that biodiversity loss has halted. However, an increase may not always indicate an improving environmental situation. In extreme cases, an increase could result from expansion of some species at the cost of others, or reflect habitat degradation. In all cases, detailed analysis must be conducted to interpret the trends accurately. The composite can hide important trends for individual species. Farmland bird population indices are available only for OECD Europe, Canada and the United States. The Biodiversity Indicators Partnership is working to develop the global WBI, building on national data. In general, more accurate and comparable time-series data on wildlife populations still need to be developed.

Government R&D budgets

[Chapter Technology and innovation]

The data refer to government budget appropriations or outlays for R&D (GBAORD) that measure the funds that governments allocate to R&D to meet various socio-economic objectives. These are defined on the basis of the primary purpose of the funder. They include control and care for the environment, as well as energy. The selection is based on the socio-economic objectives “energy” and “environment” in the NABS 2007 classification (Nomenclature for the Analysis and Comparison of Scientific Budgets and Programmes). Additional information on the methodology for internationally harmonised collection and use of R&D statistics can be found in the Frascati Manual.

R&D budgets for control and care for the environment include research on the control of pollution and on developing monitoring facilities to measure, eliminate and prevent pollution. Energy R&D budgets include research on the production, storage, transport, distribution and rational use of all forms of energy. However, they exclude research on prospecting and on vehicle and engine propulsion.

Green bonds

[Chapter International financial flows]

Green-labelled bonds are fixed-income financial instruments with proceeds earmarked for projects and assets that deliver environmental benefits. These bonds are labelled as such by the issuer and are therefore easier for investors to identify. Like normal bonds, green-labelled bonds can be issued by governments, multi-national banks or corporations, or supranational entities (i.e. a financing agency backed by multiple governments). The issuing entity guarantees to repay the bond over a certain period of time, plus either a fixed or variable rate of return. It is best practice for bonds to be reviewed or certified by a second or third party. For more information, see www.climatebonds.net/.

Growing stock in forest and other wooded land

[Chapter Forest resources]

Growing stock is defined as the volume over bark of living trees with more than X cm in diameter breast height (d.b.h. – typically at 130 cm above stump) (or above buttresses if these are higher). Includes stem from ground level or stump height up to a top diameter of Y cm. It may also include branches to a minimum diameter of W cm. The diameters used may vary by country; generally the data refer to d.b.h. of more than 10 cm.

Income inequality (Gini coefficient)

[Chapter Progress towards green growth: An overview]

Income inequality among individuals is measured by the Gini coefficient. The Gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive. It ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. Income is defined as household disposable income in a particular year. It consists of earnings, self-employment and capital income and public cash transfers; income taxes and social security contributions paid by households are deducted. The income of the household is attributed to each of its members, with an adjustment to reflect differences in needs for households of different sizes.

The source for data on the Gini coefficient is the Standardized World Income Inequality Database (SWIID). The SWIID provides comparable Gini indices of net income with the largest geographical and temporal coverage currently available.

Intensity of use of forest resources

[Chapter Forest resources]

Intensity of use of forest resources is defined as the ratio of actual fellings to annual productive capacity (i.e. gross increment). Fellings refer to the average annual standing volume of all trees, living or dead, measured over bark to a minimum diameter breast height (d.b.h.) of 0 cm that are felled during the given reference period. This includes the volume of trees or part of trees that are not removed from the forest, other wooded land or other felling site. Gross increment refers to the average annual volume of increment over the reference period of all trees, measured to a minimum d.b.h. of 0 cm.

Investment in clean energy

[Chapter International financial flows]

Bloomberg New Energy Finance (www.bnef.com) maintains a global database on new financial investment in clean energy, including investors, projects and transactions. These range from R&D funding and venture capital for technology and early-stage companies through to asset finance of utility-scale generation projects.

Investment categories are defined as follows. Venture capital and private equity (VC/PE) relates to all money invested by venture capital and private equity funds in the equity of specialist companies developing renewable energy technology. Similar investment in companies setting up generating capacity through special purpose vehicles is counted in the asset financing figure. Public markets relate to all money invested in the equity of specialist publicly quoted companies developing renewable energy technology and clean power generation. Investment in companies setting up generating capacity is included in the asset financing figure. Asset finance relates to all money invested in renewable energy generation projects (excluding large hydro), whether from internal company balance sheets, from loans, or from equity capital. This excludes refinancing. Mergers and acquisitions (M&A) relate to the value of existing equity and debt purchased by new corporate buyers, in companies developing renewable energy technology or operating renewable power and fuel projects.

The types of renewable projects included are all biomass, geothermal and wind generation projects of more than 1MW, all hydropower projects between 0.5 and 50 MW, all solar projects with those less than 1MW estimated separately, all marine (wave and tidal) energy projects and all biofuel projects with an annual capacity of at least 1 million litres.

Labour taxes

[Chapter Taxes and subsidies]

Labour tax revenues include total (i.e. supranational + federal/central government + state/regional + local government) revenue from taxes on several categories. First, there are income, profits and capital gains of individuals. Second, there are social security contributions. This would include, for example, taxes on employees, employers, self-employed or non-employed, and other social security contributions that could not be allocated among these fields. Finally, it includes taxes on payroll and workforce.

Land cover and land use

[Chapter Land resources]

“Land cover” refers to the physical surface characteristics of land, such as the type of vegetation or the presence of artificial structures. “Land use” describes the economic and social functions of land to meet demands for food, fibre, shelter, and natural resources. The two concepts are distinct but linked. A land cover like grassland may support many land uses, including livestock production and recreation. Conversely, a single use, e.g. mixed farming, may take in a number of different cover types. These could include grassland, cropped, fallow and artificial land (barns, greenhouses etc.).

Land covered by built-up area

[Chapter Land resources]

The term “built-up area” used in this report only refers to the physical presence of buildings. It does not include other forms of infrastructure and development such as paved surfaces (roads, parking lots), commercial and industrial sites (ports, landfills) and urban green spaces (parks, gardens). It is therefore not comparable to other definitions of “built-up area” in use.

Material consumption

[Chapter Materials productivity and waste]

Domestic material consumption (DMC) measures the amount of materials used in an economy (i.e. the apparent consumption of materials). It is calculated as the domestic extraction used (DEU) minus exports plus imports, and expressed in terms of weight.

Material extraction

[Chapter Materials productivity and waste]

Domestic extraction used (DEU) measures the flows of materials that originate from the environment and that physically enter the economic system for further processing or direct consumption (they are “used” by the economy). They are converted into or incorporated in products in one way or another, and are usually of economic value.

Material productivity

Material productivity is defined as the economic output, in terms of GDP, generated per unit of materials used (in terms of DMC). It is calculated as GDP per unit of DMC (USD/kg). In this report material productivity is calculated for non-energy materials only (biomass, metals, non-metallic minerals). GDP is expressed at 2010 prices and PPPs.

Materials or material resources

[Chapter Materials productivity and waste]

The term "materials" or "material resources" designates the usable materials or substances (raw materials, energy) produced from natural resources and the products derived therefrom. These usable "materials" include energy carriers (gas, oil, coal), metallic minerals (metal ores and metals), non-metallic minerals (construction minerals, industrial minerals), and biomass (biomass for food and feed, wood). Most indicators presented in this report cover non-energy materials only.

Municipal waste

[Chapter Materials productivity and waste]

Municipal waste is waste collected by or on behalf of municipalities. It includes household waste originating from households (i.e. waste generated by the domestic activity of households). It also comprises similar waste from small commercial activities, office buildings and institutions such as schools and government buildings, and small businesses that treat or dispose of waste at the same facilities used for municipally collected waste.

Nutrient balances

[Chapter Nutrient flows and balances]

The gross nutrient balances (N and P) are calculated as the difference between the total quantity of nutrient inputs entering an agricultural system (mainly fertilisers, livestock manure), and the quantity of nutrient outputs leaving the system (mainly uptake of nutrients by crops and grassland). Gross nutrient balances are expressed in tonnes of nutrient surplus (when positive) or deficit (when negative). This calculation can be used as a proxy to reveal the status of environmental pressures, such as declining soil fertility in the case of a nutrient deficit, or the risk of polluting soil, water and air in the case of a nutrient surplus.

Main elements in the gross nitrogen balance calculation

Note: Nutrients surplus to crop/pasture requirements are transported into the environment, potentially polluting soils, water and air. However, a deficit of nutrients in soils can also occur to the detriment of soil fertility and crop productivity.

Source: OECD/Eurostat (2012), Nitrogen and Phosphorus Balance Handbook, www.oecd.org/tad/sustainable-agriculture/agrienvironmentalindicators.htm

Patent indicators

[Chapter Technology and innovation]

The patent indicators presented in this report are based on data extracted from the Worldwide Patent Statistical Database (PATSTAT) of the European Patent Office (EPO) using algorithms developed by the OECD (Haščič and Migotto, 2015). Only published applications for “patents of invention” are considered (i.e. they exclude utility models, petty patents, etc.). The relevant patent documents are identified using search strategies for environment-related technologies (ENV-TECH). These strategies developed specifically for this purpose, largely draw upon the expertise of patent examiners at the European Patent Office. The ENV‐TECH includes a broad range of technologies relevant to environmental management, water-related adaptation and climate change mitigation.

Patent indicator on technology development

This indicator represents the number of inventions (simple patent families) developed by a country’s inventors. It is independent of the jurisdictions where a patent application has been registered (i.e. all known patent families worldwide are considered). The indicator is disaggregated by:

1. inventor country – fractional counts by country of residence of the inventor(s);

2. priority date – the first filing date worldwide, under the Paris Convention. The priority date is considered to be closest to the actual date of invention;

3. family size – the size of an international patent family (including the first “priority” filing and its equivalents deposited at other patent offices). The family size has been found to be correlated with the value of the invention. Family size “1 and greater” (i.e. all patent priorities) will yield figures based on all available data worldwide, including many low-value inventions; family size “2 and greater” (i.e. “claimed” priorities), used here, will count only the higher-value inventions that have sought patent protection in at least two jurisdictions; etc.;

4. technology domain.

Patent indicator on technology diffusion

This indicator refers to the number of inventions for which a patent application has been registered in a given jurisdiction through national, regional or international routes (equivalents of the priority patent application, pertaining to the same “simple patent family”). It shows the extent to which firms and individuals seek to “protect” their inventions in the relevant markets (including both domestic and foreign inventions). The indicator is disaggregated by:

1. patent office;

2. application date (date of filing);

3. coverage – which allows displaying statistics based on all available data (“full dataset, with no restriction on coverage”) or only for offices with data availability above a certain threshold (90%) in a given year (“conservative coverage”, used here); is estimated as the proportion of months in a year with the evidence of at least one patent document deposited at the patent office;

4. technology domain.

Producer support in agriculture

[Chapter Taxes and subsidies]

Producer support in agricultural is defined as the annual monetary value of gross transfers to agriculture from consumers and taxpayers. These arise from governments’ policies that support agriculture, regardless of their objectives and their economic impacts. The Producer Support Estimate (PSE) represents policy transfers to agricultural producers, measured at the farm gate and expressed as a share of gross farm receipts. The Total Support Estimate (TSE) consists of transfers to agricultural producers (measured by the PSE), consumers (measured by the CSE) and support to general services to the agricultural sector (measured by the General Services Support Estimate [GSSE]). Transfers included in the PSE are composed of market price support, budgetary payments and the cost of revenue foregone by the government and other economic agents. Support estimates are expressed as percentages of TSE and as percentage of total tax revenue.

Government support refers to payments made to farmers to manage the supply of agricultural commodities, influence their cost, supplement producers’ income and achieve other social and environmental aims. This support to farmers, estimated in terms of the OECD PSE, can be ranked according to its potential impacts on the environment. The potentially most harmful support to farmers comprises: i) market price support, ii) payments based on commodity output, without imposing environmental constraints on farming practices, and iii) payments based on variable input use, without imposing environmental constraints on farming practices.

The potentially least harmful support to farmers comprises the payments based on non-commodity criteria and payments for input use linked to constraints on resource use. They are generally beneficial because they are usually designed to help reduce agricultural pressures on the environment. However, neither the total PSE nor its composition in terms of policy categories, indicate the actual impact of policy on production and markets. The actual impacts (ex post) will depend on the many factors that determine the aggregate degree of responsiveness of farmers to policy changes – including any constraints on production. For further information, see the OECD Producer Support Estimates webpage.

Production-based CO₂ productivity

[Chapter Carbon productivity]

Production-based CO₂ productivity is defined as the economic output, in terms of GDP, generated per unit of CO₂ emitted. It is calculated as GDP per unit of production-based CO₂ emissions (USD/kg). Included are CO₂ emissions from combustion of coal, oil, natural gas and other fuels. The estimates of CO₂ emissions are from the International Energy Agency’s database of CO₂ Emissions from Fuel Combustion. Emissions were calculated using IEA energy databases and the default methods and emission factors given in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. GDP is expressed at constant 2010 USD using purchasing power parities (PPPs).

Protected areas

[Chapter Biodiversity, ecosystems and wildlife resources]

The protected area indicators presented here are constructed using data extracted from the World Database on Protected Areas (WDPA) maintained by the International Union for Conservation of Nature (IUCN) and UN Environment Programme’s World Conservation Monitoring Centre (WCMC). A protected area is defined by the IUCN as a clearly defined geographical space, recognised, dedicated and managed, through legal or other effective means, to achieve the long term conservation of nature with associated ecosystem services and cultural values.

IUCN classifications reflect different management objectives. Categories Ia, Ib and II are strict nature reserves, wilderness areas and national parks; categories III and IV include natural monuments and habitat/species management areas; and categories V and VI are predominantly landscape-level designations aimed at preserving traditional human-environment interactions. A number of protected areas have no IUCN categories recorded in the WDPA; these include some nationally designated areas and all regionally and internationally designated areas. Where protected areas overlap, the overlapped area is assigned to the overlapping category that comes first in the following order of precedence: Ia, Ib, II, III, IV, V, VI, no category. Overseas territories are not included. UNESCO Man and Biosphere Reserves are not included, because they may not meet the standard definition of protected areas used by WCMC to calculate protected area coverage. Protected area definitions, although harmonised by the WCMC, may vary among countries. The data do not provide any indication of whether protected areas are effectively managed, ecologically representative, or well-connected and integrated into the wider landscape or seascape.

The WDPA dataset is not necessarily a complete representation of all the conservation areas, which have been designated in a country; the quality of the WDPA depends on the accessibility of accurate, comprehensive, up-to-date conservation areas information from data holders. Mismatches between on the ground conservation areas and conservation areas in the WDPA may be due among others to: new data being quality checked to fit the WDPA standards, data not submitted to the WDPA yet, new conservation area boundaries not being accurately digitised or simply not yet being digitised. Details are described in UNEP-WCMC (2015). World Database on Protected Areas User Manual 1.0, UNEP-WCMC, Cambridge, UK.

Public access to sewage treatment services

[Chapter Access to water supply, sanitation and sewage treatment]

Public access to sewage treatment services shows the percentage of the national resident population that is actually connected to a public wastewater treatment plant. It does not take into account independent private treatment facilities (e.g. septic tanks) used where public systems are not economic. Wastewater treatment is the process to render wastewater fit to meet applicable environmental standards or other quality norms for recycling or reuse, or discharge to the environment. Three broad types of treatment are distinguished: primary, secondary and tertiary.

• Primary treatment of wastewater by a physical and/or chemical process involving settlement of suspended solids, or other process. The biological oxygen demand (BOD) of the incoming wastewater is reduced by at least 20% before discharge. Total suspended solids of the incoming wastewater are reduced by at least 50%.

• Secondary treatment of wastewater by a process generally involving biological treatment with a secondary settlement or other process. It results in a BOD removal of at least 70% and a chemical oxygen demand (COD) removal of at least 75%.

• Tertiary treatment (additional to secondary treatment) of nitrogen and/or phosphorous and/or any other pollutant affecting the quality or a specific use of water (microbiological pollution, colour, etc.). The following minimum treatment efficiencies define a tertiary treatment: organic pollution removal of at least 95% for BOD and 85% for COD, and at least one of the following: i) nitrogen removal of at least 70%; ii) phosphorus removal of at least 80%; iii) microbiological removal achieving a faecal coliform density less than 1 000 in 100 ml.

The optimal connection rate is not necessarily 100%. It may vary among countries and depends on geographical features and on the spatial distribution of habitats.

Public RD&D budgets on energy

[Chapter Technology and innovation]

The data are obtained from the IEA Energy Technology RD&D Statistics Database.

Public RD&D on energy refers to the budgets of public entities (government, public agencies and state-owned enterprises, as defined by the IEA) covering research, development and demonstration (RD&D) programmes that focus on the sourcing, storage, transportation, distribution and rational use of all forms of energy. This covers basic research (oriented towards the development of energy-related technologies), applied research, experimental development and demonstration. Deployment is excluded. Estimates of RD&D are reported from the funder perspective as budget (rather than from the performer perspective as expenditure). As collected by the IEA, RD&D programmes concern energy efficiency, fossil fuels (oil, gas and coal), renewables, nuclear fission and fusion, hydrogen and fuel cells, other power and storage techniques, and other cross-cutting technologies or research.

RD&D budgets for renewable energy cover hydro, geothermal, solar (thermal and PV), wind and tide/wave/ocean energy, as well as combustible renewables (solid biomass, liquid biomass, biogas) and other renewable energy technologies (all supporting measuring, monitoring and verifying technologies in renewable energies).

RD&D budgets for fossil fuel energy cover oil, gas and coal. They exclude all research, development and demonstration related to CO₂ capture and storage (CCS). They are expressed as a percentage of the total energy RD&D public budget (directed at all forms of energy).

Renewable electricity generation

[Chapter Energy productivity]

Renewable electricity is calculated as the output of electricity produced from renewable energy sources divided by total output of electricity, expressed as a ratio. Renewables include hydro, geothermal, solar (thermal and PV), wind and tide/wave/ocean energy, as well as combustible renewables (solid biomass, liquid biomass, biogas) and renewable municipal waste.

Renewable energy

[Chapter Energy productivity]

Renewable energy is defined by the International Energy Agency (IEA) as energy that is derived from natural processes that are replenished constantly. The definition includes energy generated from solar (photovoltaic, thermal), wind, geothermal, hydropower (large, medium and small) and ocean resources (tide, wave), biofuels (solid, liquid), biogases, and renewable municipal waste. Under the IEA methodology, industrial waste and non-renewable municipal waste are excluded from the definition of renewable energy sources, as are waste heat, net heat generated by heat pumps, and electricity generated with hydro pumped storage.

Threatened species

[Chapter Biodiversity, ecosystems and wildlife resources]

Threatened species refer to critically endangered, endangered and vulnerable species, i.e. those plants and animals in danger of extinction or soon likely to be. See the International Union for Conservation of Nature (IUCN) Red List Categories and Criteria: Version 3.1 Second Edition for further information. The indicator presented focuses on amphibians. Other major groups (e.g. mammals, birds, fish, reptiles, invertebrates, vascular plants and fungi) are not covered here. Data on threatened species are available for all OECD countries with varying degrees of completeness. The number of species known or assessed does not always accurately reflect the number of species in existence. Countries apply the IUCN standard definitions with varying degrees of rigour. Historical data are generally not comparable or are not available.

Trade in forest products (exports)

[Chapter Forest resources]

Exports of forest products refer to products of domestic origin or manufacture shipped out of the country. The category includes exports from free economic zones and re-exports. It excludes “in-transit” shipments. Values are recorded as free-on-board (i.e. FOB).

Value added of forestry

[Chapter Forest resources]

This indicator refers to the value added of forestry and logging (activity 02 in ISIC Rev.4) as a percentage of total value added, measured in USD at 2010 prices and PPPs.

Waste composting

[Chapter Materials productivity and waste]

Composting is a biological process that submits biodegradable waste to anaerobic or aerobic decomposition, and that results in a product that is recovered (for example as a fertiliser for plants).

Waste recycling

[Chapter Materials productivity and waste]

Recycling is defined as any reprocessing of material in a production process that diverts it from the waste stream, except reuse as fuel. Both reprocessing as the same type of product, and for different purposes are included.

Water stress

[Chapter Freshwater resources]

Water stress is defined as the intensity of use of freshwater resources, expressed as gross abstraction in percentage of total available renewable freshwater resources (including inflows from neighbouring countries) or in percentage of internal freshwater resources (i.e. precipitation minus evapotranspiration). Water stress can be categorised as:

• Low (less than 10%) means generally no major stress on the available resources.

• Moderate (10-20%) means water availability is becoming a constraint on development and significant investment is needed to provide adequate supplies.

• Medium-high (20-40%) implies management of both supply and demand, and a need for conflicts among competing uses to be resolved.

• High (more than 40%) indicates serious scarcity and usually shows unsustainable water use, which can become a limiting factor in social and economic development.

National water stress levels may hide important variations at subnational (e.g. river basin) level, particularly in countries with extensive arid and semi-arid regions. The national indicator may conceal unsustainable use in some regions and periods, as well as high dependence on water from other basins.