Economic Intensity of Greenhouse Gas Emissions 2021

2021 EU Emission Intensity Comparisons

In this chapter Ireland is shown alongside other EU Member States. EU data were sourced from the Eurostat database. Eurostat is the statistical office of the European Union and is part of the European Commission. The charts illustrate data available at the start of January 2023 and are subject to revision. Eurostat greenhouse gas estimates for Ireland are used for 2021. The Irish Output, GVA and GNI* estimates are consistent with the benchmark Annual National Accounts (ANA21) published in July 2022. Air emissions results describe NACE sectors and exclude households.

Eurostat greenhouse gas emissions data can be found at the following location:

https://ec.europa.eu/eurostat/web/climate-change/data/database

For ease of reference, Ireland is highlighted in green in the following charts, with the EU 27 average highlighted in red.

In part due to the highly globalised nature of the Irish economy, both the Output and GVA air emission intensities were among the lowest of EU Member States in 2021. Modified GNI (GNI*), a measure of economic activity which is designed to exclude many of these globalisation effects, is included alongside GVA to give users an insight into the de-globalised Irish position. Further explanatory material on globalisation is provided below. See Figures 3.1 and 3.2.

Figure 3.1 displays the estimated GHG emission intensity per euro of Output across EU Member States in 2021. Ireland had the fourth lowest Output intensity at 69 grams per euro. The EU 27 average was 104 grams per euro of Output. Bulgaria had the highest intensity and Luxembourg the lowest at 362 grams and 32 grams per euro of Output respectively.

Figure 3.2 displays the estimated GHG emission intensity per euro of GVA across EU Member States in 2021. Ireland had the third lowest GVA intensity at 135 grams per euro. Additionally, Ireland’s modified GNI (GNI*) is also shown. Modified GNI (GNI*) is an indicator that was recommended by the Economic Statistics Review Group and is designed to exclude those globalisation effects which disproportionally impact the measurement of the size of the Irish economy. Ireland’s intensity was 232 grams per euro of GNI*. While not strictly comparable to the other GVA estimates here, it is included to give users an insight into the de-globalised Irish position. The EU 27 average was 221 grams per euro of GVA. Bulgaria had the highest intensity and Sweden the lowest at 832 grams and 84 grams per euro of GVA respectively. 

Similarly, Figure 3.3 displays the estimated GHG emission intensity per euro of constant 2010 price GVA. In both, Ireland had one of the lowest GVA air emission intensities in 2021 of EU Member States, lower than the EU 27 average.  

GNI*: Gross National Income (GNI) at market prices is equal to Gross National Product (GNP) at market prices plus EU subsidies less EU taxes. This is more commonly described as being equal to Gross Domestic Product (GDP) plus net primary incomes from abroad.

To produce Modified GNI (GNI*) CSO take GNI and adjust for:

• factor income of Redomiciled Companies
• depreciation on R&D Service Imports and Trade in Intellectual Property (IP)
• depreciation on Aircraft Leasing

EU 2012 to 2021 comparisons

In addition to displaying the above point-in-time situation among EU Member States in 2021, it is useful to examine the 2012-2021 time series to investigate trends over time.

Emissions occur due to activity – with increasing activity (output) we can expect an associated increase in air emissions. In Table 3.1 below, the percentage change in Output, GVA and GHG from 2012 to 2021 are shown for each EU Member State. The table is sorted by Output.

Ireland had the highest percentage increase in both Output (113%) and GVA (153%) of any EU Member State from 2012 to 2021. GNI* also showed a large change from 2012 to 2021, increasing by 84% to €234 billion. Over the same time between 2012 and 2021, Ireland’s GHG air emissions, excluding households, increased by 1%.

Most EU Member States (22 of 27) had a decrease in GHG air emissions over the period. Ireland is one of the five EU Member States which had an increase in emissions. Three of these five EU Member States are those with the largest increases in Output (activity) from 2012 to 2021. See Table 3.1.

Malta had the second highest increase in Output (110%) but a 36% decrease in GHG air emissions. Most of the decrease in Malta’s air emissions is due to a reduction in emissions from the electricity sector. Since 2015, the Malta-Sicily interconnector has allowed Malta to be connected to the European power grid and import a significant share of its electricity.

Between 2012 and 2021, Ireland had a 113% increase in Output, a 153% increase in GVA and a 1% increase in GHG. Combining these estimates resulted in Ireland’s emissions intensity decreasing by 53% and 60% respectively. While all EU Member States showed both an Output and GVA intensity decrease from 2012 to 2021, Ireland had one of the biggest intensity decreases among EU Member States. Ireland’s GNI* intensity decrease of 45% was greater than the EU 27 average GVA intensity decrease of 33%. Table 3.2 is sorted by the percentage change in GVA intensity.

Among EU Member States, Greece had the smallest decrease in Output emissions intensity between 2012 and 2021, decreasing by 25% from 339 to 255 grams per CO₂ equivalent. Malta, in large part for the reasons described above, had the largest decrease in Output emissions intensity between 2012 and 2021, decreasing by 70% from 152 to 46 grams per CO₂ equivalent. Ireland had the third largest Output intensity decrease among EU Member States between 2012 and 2021. See Figure 3.4.

Among EU Member States, Cyprus had the smallest decrease in GVA emissions intensity between 2012 and 2021, decreasing by 19% from 401 to 323 grams per CO₂ equivalent. Malta, in large part for the reasons described above, had the largest decrease in GVA emissions intensity between 2012 and 2021, decreasing by 70% from 480 to 146 grams per CO₂ equivalent. Ireland had the third largest GVA intensity decrease among EU Member States between 2012 and 2021 and was also among the EU Member States with the largest percentage decrease in intensity if measured using GNI*. See Figure 3.5.

Similarly, Figure 3.6 displays the estimated GHG emission intensity per euro of constant 2010 price GVA. In both, Ireland had the third largest percentage decrease in GVA air emission intensities of EU Member States from 2012 to 2021, with a greater decrease in emissions intensity than the EU 27 average irrespective of whether measured in current or constant prices.

EU Sectoral Comparisons

To provide further insight into Ireland’s position relative to other EU Member States and to help illustrate the effects of globalisation on these intensity estimates, selected sectoral data is provided. The four sectors shown are Agriculture, Forestry and Fishing (A), Manufacturing (C), Construction (F), and Information and Communication (J).

Figure 3.7 displays the estimated GHG emission intensity of the Agriculture, Forestry and Fishing (A) sector per euro of GVA across EU Member States in 2021. This is almost entirely composed of Agriculture emissions. Users should note that Irish non-product subsidies (D.39) are large in this sector, important when examining GVA in basic prices rather than GVA at factor cost. Ireland had the second highest GVA intensity at 5,093 grams per euro. The EU 27 average was 2,031 grams per euro of GVA. Luxembourg had the highest intensity and Malta the lowest at 5,457 grams and 809 grams per euro of GVA respectively.

This is largely due to the size of the cattle herd in Ireland. In December 2021 Ireland had the third highest number of cattle in the EU, with almost 6.65 million. France had the highest number at 17.33 million while Germany had 11.04 million. See Figure 3.8.

The 2021 total equivalent CO₂ emissions from Agriculture in Ireland were contributed by:

• Carbon dioxide emissions 6%
• Nitrous oxide emissions 29%
• Methane emissions 65%

Most Nitrous oxide emissions from Agriculture arise from nitrogen fertilisers. Most Methane emissions from Agriculture are caused by the digestive systems of ruminant animals.

Figure 3.9 displays the estimated GHG emission intensity of the Manufacturing (C) sector per euro of GVA across EU Member States in 2021. Ireland had the lowest GVA intensity at 52 grams per euro, in part due to the highly globalised nature of this sector. The EU 27 average was 374 grams per euro of GVA. Bulgaria had the highest intensity at 1,206 grams per euro of GVA. See Figure 3.9.

Figure 3.10 displays the estimated GHG emission intensity of the Construction (F) sector per euro of GVA across EU Member States in 2021. Ireland had the eighth lowest GVA intensity at 62 grams per euro. The EU 27 average was 75 grams per euro of GVA. Slovakia had the highest intensity and Poland the lowest at 451 grams and 30 grams per euro of GVA respectively. See Figure 3.10.

Figure 3.11 displays the estimated GHG emission intensity of the Information and Communication (J) sector per euro of GVA across EU Member States in 2021. Ireland had the second lowest GVA intensity at 2 grams per euro. As previously seen with Manufacturing, this is in part due to the highly globalised nature of this sector. The EU 27 average was 12 grams per euro of GVA. Poland had the highest intensity and Finland the lowest at 130 grams and 1 gram per euro of GVA respectively. See Figure 3.11.