As an increasing number of countries adopt green economy strategies, there is a need to support them in measuring the magnitude of this new economy. This papers aims to guide them in this discussion. An Environmental Goods and Services Sector (EGSS) framework is a vital instrument for facilitating the greening of the economy, as it encompasses the two priority areas for green economy indicator development, namely the greening of conventional economic activities and the growing share of green or environment-related sectors.
Designed to scope out the key elements and issues, the paper introduces the EGSS sector, including the EGSS framework, main statistical elements and data sources. It also provides an overview of developments in the European Union, the United States, Canada, Australia, China and South Korea; as well as work of international organizations on measuring green economy. The paper concludes with an overview of the key issues and challenges including understanding the scope of the green economy, how data can be interpreted by policymakers, what activities should be covered, how to measure cleaner and more resource efficient products, and how to identify and measure resource management activities.