Environment industry: business sector

Canada's environment industry earned $15.8 billion in revenues from environmental goods, environmental services and environment-related construction projects in 2002, up 8% from 2000.

An "industry" that cuts across conventional industrial classifications, the environment industry comprises businesses that make goods and services used to measure, prevent, limit or correct damage to water, air and soil. The number of firms in the industry reached 7,967 in 2002, up from 7,493 in 2000. The increase was primarily as a result of the growth in Environment Consulting Services industry where the number of firms rose from 993 to 1,510 over the period. Firms that sell "eco-efficiency" technologies that decrease material inputs, recover valuable byproducts and reduce energy consumption continue to grow at a faster rate than average within the industry.

Revenues from the sale of environmental services reached $7 billion in 2002, accounting for 44% of total environmental revenues. As in previous years, sales of waste management and remediation services accounted for the most significant proportion of these revenues, some $5.1 billion in 2002, up from $4 billion in 2000. This 27% increase was to be expected given the increased waste generation by Canadian businesses and households; higher reclamation and decommissioning expenditures by the mining, oil and gas and petroleum and coal products industries; and various initiatives directed at brownfield redevelopment during the period. Environmental activities related to consulting engineering and analytical services ($638 million) and water and wastewater management services ($470 million) also made significant contributions to total environmental services revenues in 2002.

Revenues from the sale of environmental goods were $6.6 billion in 2002. Almost half of this amount came from the sale of recyclable materials ($3.3 billion), some of which were materials collected through municipal recycling programs. An additional $1.2 billion were generated from the sales of systems, equipment and supplies for water supply and conservation as well as wastewater management and sewage treatment.

The environment industry earned $2.2 billion from a range of environment-related construction projects. Construction of water and sewage treatment plants and other infrastructure related to water yielded about $118 million in revenue. In comparison, the industry earned $2 million from the construction of renewable energy production facilities.

Small- and medium-sized establishments continued to dominate the Canadian environment industry in 2002. Small establishments (those with fewer than 100 employees) made up 93% of all firms in the industry and their revenues represented 54% of the total. Total employment in firms that reported environmental revenues in 2002 reached 159,720. This total includes all workers who performed environmental and non-environmental activities.

Export markets represented the source of 9% of environmental revenues during the period. Most of the $1.4 billion environmental export revenues were exports to the United States ($1.1 billion), Europe ($121 million) and Asia ($113 million). The top exports were goods and services related to waste and remediation ($405 million), air ($343 million) and water ($212 million).

Definitions, data sources and methods: survey number 1209.

The report Environment Industry: Business Sector, 2002 (16F0008XIE, free) is now available online. From the Our products and services page, under Browse our Internet publications, choose Free then Environment.

For more information or to enquire about the concepts, methods or data quality of this release, contact Rowena Orok (613-951-0344) or the information officer (613-951-0297; environ@statcan.gc.ca), Environment Accounts and Statistics Division.