Environmental sector keeps growing in importance

Installation of solar panels
© CBS
In 2021, the Dutch environmental sector represented a value added of 22.3 billion euros, contributing roughly 2.6 percent to gross domestic product (GDP). This was still 1.7 percent in 2001. Employment in renewable energy has nearly doubled in the span of a decade. This is reported by Statistics Netherlands (CBS) on the basis of newly released figures on the environmental sector, including a first flash estimate for 2021.

The environmental sector consists of private enterprises and public entities which produce goods and services aimed at protecting the environment and managing natural resources. Environmental protection activities include for example measurement, prevention and repair of environmental damage caused by air, water and soil pollution. Management of natural resources includes the production of energy-saving and CO2-reducing technologies, products and services, such as the production of renewable energy, electrical transport and insulation work.

The share of the environmental sector in the Dutch economy has grown steadily, from 1.7 percent in 2001 to 2.6 percent in 2021. The share of activities related to natural resource management has doubled over the past two decades. This increase is closely linked to the energy and climate transition. The share held by activities aimed at preserving natural resources showed limited growth in the period 2001-2010, namely 0.2 percentage points.

Employment in renewable energy continues to grow

Renewable energy production and energy conservation provided over 72 thousand FTEs in 2020, versus 40 thousand in 2011. However, there are differences between the activities. The largest increase can be seen in solar energy, particularly installation of solar panels. Employment related to this activity increased more than eleven-fold between 2011 and 2020. Employment related to wind energy doubled over the same period. Employment related to heat, geothermal energy and hydropower remained virtually the same.

Size of Dutch environmental sector equal to EU average

In 2019, the contribution of environmental activities to GDP amounted to 2.3 percent on average across the European Union. It was approximately the same within the Netherlands. The environmental sector is relatively largest in Finland, Estonia and Austria, with shares of 5.8 percent, 4.6 percent and 4.2 percent of GDP respectively. These countries have high levels of renewable energy production; management of forest areas is also a relatively large contributor to GDP. At the bottom of the ranking were Ireland (0.9 percent), Malta (1 percent) and Belgium (1.1 percent).

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