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Understanding Trade in Environmental Services: Key Issues and Prospects 323
improvements in resource productivity). This generates a number of issues
related to the factors that are driving the evolution of environmental markets,
with significant implications for the composition and direction of the trade in
environmental services.
The environmental market
The global market for environmental services is growing rapidly because of
environmental awareness and market demand. In 2006, the global market for
environmental goods and services stood at US$690 billion, with an expected
increase to around US$780 billion in 2010 (Sinclair-Desgagné 2008).
Within the environmental industry, environmental services represent the most
important component. The services accounted for over 65 percent of total environmental
market value in 2002 (table 10.1). The largest segment in terms of
value is solid waste management, followed at a distance by wastewater treatment.
Smaller, but still substantial sectors include environmental consulting and engineering,
remediation and industrial services, hazardous waste management, and
environmental testing and analysis services.
Currently, developing countries have a small share of the environmental market.
In 2006, only 14 percent of total environmental revenues were generated by
developing countries (including transition economies) (table 10.2). This appears
to be low, but the magnitude of environmental services in developing countries is
probably underestimated because of statistical reporting problems.
Table 10.2 also shows that developing countries represent the greatest growth
market. Many developing countries recorded dynamic (often double-digit) growth
rates over 2000–06. It is estimated that the market in the developing countries has
grown by over 10 percent during the last six years, compared with a 4 percent
Table 10.1. The Global Environmental Industry, by Segment, 2002
Segment
US$, billions
Environmental products 187
Environmental services 376
Solid waste management 141
Wastewater management 80
Water distribution 89
Consulting and engineering 32
Remediation services 30
Analytical services 4
Source: Geloso Grosso (2004), derived from data of Environmental Business International.