Glossary

Biomass and the footprint of biomass

Biomass includes all plant or animal material, or material from other organic origin.

Examples include wood, agricultural crops and garden, fruit and vegetable waste, as well as vegetable oil and wool. While biomass serves as a key raw material for manufacturing products, it is of course also a finished product. The footprint of biomass is based on ‘extracted’ weight. Thus, no weight adjustment takes place to a product’s moisture content. As an example, while a strawberry contains more moisture than a grain, both are taken simply by weight.

CH₄

Methane (= marsh gas). CH4 is formed by incomplete combustion of fuels, leakage from the natural gas network and by fermentation, among other things. Other important sources of this gas include livestock farming and rice cultivation. Methane is a greenhouse gas contributor to global warming and the largest component of natural gas.

CO₂

Carbon dioxide. CO² is released, among other things, from the burning of the carbon element in fuels. It is a greenhouse gas whose increasing concentrations in the atmosphere contribute to an enhanced greenhouse effect, causing a further increase in global temperature.

CO₂ equivalents

In order to calculate the combined impact of the different greenhouse gas emissions, emission levels are converted into CO₂ equivalents. This conversion is based on the ‘Global Warming Potential’ (GWP), i.e. the measure of warming that is contributed by each gas to the greenhouse effect.

Greenhouse gas emissions are generally expressed in megatonnes of CO₂ equivalents (1 megatonne = 1 million tonnes = 1 billion kilograms). One kg of CO₂ equivalents equals the effect of one kg of CO₂ being emitted. According to the new IPCC regulatory standards, effective as of September 2022, the emission of one kg of nitrous oxide is equivalent to 265 kg of CO₂ equivalents, and the emission of one kg of methane is equal to 28 kg of CO₂ equivalents.

Consumption footprint

The Dutch consumption footprint comprises all greenhouse gas emissions emitted for the total Dutch consumption.

Control of enterprises

The control of enterprises is determined on the basis of the country where strategic decision-making takes place. This control lies with the Ultimate Controlling Institutional Unit (UCI). Foreign control means that the country of residence of the UCI is a country other than the Netherlands.

Direct domestic consumption

The Dutch household consumption, government consumption and investments made by households, government and enterprises.

Domestic exports (Dutch-manufactured exports)

Exports after production in the Netherlands, or after significant processing of foreign-produced goods (taking into account the level of adjustments in the product’s HS code). Re-exports and domestic exports combined constitute the basis of total Dutch export figures.

Dutch business economy

The General Business Register (ABR) is based on the Dutch Standard Industrial Classification (SBI), which classifies business units according to their main activity. The Dutch business economy comprises all enterprises listed in the Standard Industrial Classifications (Dutch SBI 2008) sections B up to and including N, exclusive of K plus S95. This delineation is referred to internationally as ‘non-financial business economy’.

This category is composed of the following sectors:

B Mining and quarrying

C Manufacturing

D Production and distribution of and trade in electricity, gas, steam and air conditioning supply

E Water supply; sewerage, waste and wastewater management and remediation services

F Construction

G Wholesale and retail trade; motor vehicle repair

H Transportation and storage

I Accommodation and food service activities

J Information and communication

L Renting, buying and selling of real estate

M Consultancy, research and other specialised business services

N Renting and leasing of tangible goods and other business support services

S95 Repair of personal and household goods

Emission coefficient

Emissions from an activity divided by its total output, i.e. emissions per unit of output.

Emissions trade balance

Emissions trade balance is the balance of the greenhouse gas footprint of imports minus the greenhouse gas footprint of exports.

Enterprise (business unit) or firm

The actual transactor in the production process, characterised by autonomy with respect to the decisions about that process and by offering its products to third parties.

An enterprise comprises one or several legal entities. A distinctive feature is the autonomy in the decision-making with regard to production taking place within this composite entity. The Dutch component of an entity whose activities extend across multiple countries is considered an enterprise in itself for the sake of national statistics.

Enterprise (enterprise group)

The statistical unit acting as the financial transactor. In operational terms, the enterprise group is defined as the most comprehensive collection of legal units established in the Netherlands over which control can be exercised and which is homogeneous by institutional sector. An enterprise group may consist of one or more business units. See also: Enterprise (business unit).

Entrepreneur

A person who works for his/her own account and risk in his/her own enterprise or practice (self-employed) or as a salaried director of his/her own enterprise (director-major shareholder).

Export earnings

The value of gross exports minus the consumption of imported raw materials, semi-manufactured goods and support services.

Exports

The sum of Dutch domestic exports and re-exports.

Footprint of imports

The Dutch footprint of imports comprises all greenhouse gas emissions emitted for the total Dutch imports. This therefore includes not only imports remaining in the Netherlands but also re-exports.

Foreign Direct Investment (FDI)

An enterprise receiving direct investments from abroad is an enterprise in which a foreign investor holds at least 10% of the ordinary share capital or the voting rights, or the equivalent thereof. This involves having a controlling interest and substantial influence on the management of the enterprise. Direct investment consists of share capital, participating interests in group enterprises abroad and credit lending.

Foreign enterprise

A foreign enterprise is classified according to the country where it is ultimately controlled. This is done based on the Ultimate Controlling Institutional Unit (UCI). The UCI is defined as that enterprise which is placed higher up in the chain of control of the Dutch enterprise that is not under the ultimate control of any other company or enterprise. Foreign control means that the country of residence of the UCI is a country other than the Netherlands.

Foreign subsidiary

If a Dutch enterprise holds a majority stake in a foreign enterprise, this enterprise is a subsidiary of a Dutch enterprise, or a foreign enterprise under Dutch control. There is no minimum amount of investment or minimum share of voting rights in the foreign enterprise. Such investments abroad, made by an enterprise in the Netherlands and under Dutch control (Dutch multinational), are aimed at building up a lasting interest in a foreign enterprise.

Fossil fuels and the footprint of fossil fuels

Fossil fuels include petroleum, natural gas and coal. The material footprint only includes primary energy carriers. Primary energy carriers are extracted from nature. Secondary energy carriers make use of primary energy carriers and thus contribute to the material footprint.

FTE

A measure of labour volume, calculated by converting all full-time and part-time jobs to full-time jobs, also referred to as full-time equivalents (FTE).

Two half-time jobs (0.5 FTE each) add up to a labour volume of one labour year.

Greenhouse gases

Greenhouse gases absorb part of the heat that is emitted to Earth by solar radiation. Increasing concentrations of greenhouse gases in the atmosphere means more heat is trapped, causing the Earth’s surface temperature to rise. This is referred to as the enhanced greenhouse effect. The main greenhouse gases are carbon dioxide (CO₂), methane (CH4), nitrous oxide (N2O), HFCs, PFCs and SF6.

Gross domestic product (GDP)

GDP is a measure for the size of a country’s economy. This is calculated from the sum of the value added by enterprises, households and governments to the goods and services they have used in their production activities. This sum is referred to as the value added at basic prices. To arrive at GDP at market prices, the balance of taxes on production plus subsidies is added as well as the difference between the VAT attributed and VAT paid.

Import intensity

The import intensity ratio is an indicator of the degree of international competitive pressure in the local market. It is expressed as a percentage share which shows to what extent domestic demand for goods or services depends on foreign imports. The higher the import intensity ratio, the larger the contribution of imports in meeting the total demand for goods and services.

Imports

The sum of imports for domestic use and imports for re-export.

Imports for domestic use/consumption

Goods, destined for Dutch residents, transported from a foreign country into the economic territory of the Netherlands. Included are raw materials needed for processing in the production process, semi-manufactured goods, fuels and fixed assets earmarked for investment.

Imports for re-export

Goods transported via the Netherlands which are temporarily owned by a resident of the Netherlands and subsequently leave the Netherlands without having undergone any significant industrial processing.

Independent SMEs

Independent small and medium-sized enterprises (SMEs) comprise all businesses in the Netherlands owned by Dutch residents with total numbers of employed persons in the entire organisation falling below 250.

Independent SMEs with foreign subsidiaries

Independent small and medium-sized enterprises (SMEs) with foreign subsidiaries comprise all Dutch-owned enterprises where the umbrella enterprise group has fewer than 250 employed persons and at least one subsidiary abroad.

Independent SMEs without foreign subsidiaries

Independent small and medium-sized enterprises (SMEs) without foreign subsidiaries comprise all Dutch-owned enterprises where the umbrella enterprise group has less than 250 employed persons and no subsidiaries abroad.

Intellectual property

A collective term for rights granted on detailed ideas and concepts for example patents, trademarks and copyrights.

Intermediate goods

Inputs in the production process, such as raw materials, semi-manufactured goods and fuels.

An intermediate product is used during the production process. It is often transformed and then incorporated into the end product. Intermediate goods are therefore used to produce other goods.

Intermediate imports

Intermediate imports involve the imports used as inputs in the production process.

These inputs include raw materials, semi-manufactured goods, fuels and services. An intermediate product is used during the production process. It is often transformed and then incorporated into the end product. Intermediate goods are therefore used to manufacture other goods or services.

Intermittent exporter

An enterprise is an intermittent exporter when it exports for at least one year and a maximum of two years in a four-year period. See also: perennial exporter.

International production chain (value chain)

An international production chain comprises all activities – in more than one country – that are required to deliver a product or service from the concept phase through the various production stages to end users and post-use processing.

International trade in goods

International trade in goods involves residents who deliver goods to locations abroad and vice versa. In intra-EU imports, this is the value of the goods including freight and insurance costs up to the Dutch border. In extra-EU imports, this is the value of the goods including freight and insurance costs up to the external border of the European Union. The export value is including freight and insurance costs up to the Dutch border. This is in line with the International Trade in Goods (ITG) statistics. The ITG source statistics use different concepts than the National Accounts. For instance, source statistics assume cross-border movement of goods, while economic ownership is leading for the National Accounts. Integration into the National Accounts also produces additional differences.

International trader

An international trader is an entrepreneur at the helm of an enterprise that imports and/or exports services and/or goods.

International trade in services International trade in services occurs when Dutch residents provide services to residents of another economy and vice versa. Services are products that are generally not tangible, such as transport services, business services and personal, cultural and recreational services. Dutch residents refers to enterprises and individuals that engage in economic activities from any location in the Netherlands that has been in use for more than one year.

Internationally trading enterprise

An enterprise that imports and/or exports services and/or goods.

Investments in tangible fixed assets

Goods which are purchased or produced in-company for use as capital assets in the production process. This includes goods that have a life span exceeding one year, such as buildings, dwellings, machinery, transport vehicles and the like.

Labour year

A measure of labour volume, calculated by converting all full-time and part-time jobs to full-time jobs, also referred to as full-time equivalents (FTE). Two half-time jobs (0.5 FTE each) add up to a labour volume of one labour year.

Land use footprint

The land use footprint of Dutch imports is the amount of land used to produce goods and services that are imported by the Netherlands.

Material footprint

The material footprint of Dutch imports is the amount (in terms of weight) of raw materials extracted for all goods and services imported.

Metals and the metal footprint

Metals are all chemical metals, such as iron, aluminium and copper. The metal footprint comprises the total metal ores required. Alloys such as steel contribute only their share of metal ore to the metal footprint.

Multifactor productivity (MFP)

Multifactor productivity is a measure of production (output) per unit of all inputs. This is different from labour productivity, which only presents output per hour worked. Multifactor productivity thus measures how efficiently the various production factors are combined to account for economies of scale, capacity utilisation rate and technological developments, for instance.

Multinational

An enterprise with a parent or subsidiary abroad. See also: foreign subsidiary.

N₂O

Nitrous oxide (= laughing gas). N2O is formed during various chemical conversion processes, particularly in agriculture via denitrification processes reinforced by the application of manure and fertiliser and, in the production of nitric acid and in car catalysts. It is a powerful greenhouse gas contributor to global warming.

Non-metallic minerals and the footprint of non-metallic minerals

Other minerals include all naturally occurring inorganic substances that are non-metallic. Examples include chalk, limestone, salt and sand. The weight extracted contributes to the footprint, irrespective of how much moisture the product retains.

Non-multinational

Enterprises without a parent or subsidiary abroad.

Perennial exporter

An enterprise is a perennial exporter when it reports goods exports for at least three years in a four-year period. See also: intermittent exporter.

Quasi-transit trade

Quasi-transit trade involves the import of foreign goods that undergo little or no processing upon arrival in the Netherlands and are then forwarded again to a foreign country. The goods are owned by a foreign enterprise while they are in the Netherlands (as opposed to re-exports). Furthermore, at least one of the following administrative tasks must be completed in the Netherlands in order to be deemed quasi-transit trade:

• Upon arrival in the Netherlands, goods from outside the EU are cleared through customs;
• The goods leave the Netherlands and the EU and an export document is drawn up by customs;
• The international goods are stored in the Netherlands for at least one day. This makes the owner subject to VAT and therefore the owner has to register for VAT.

The quasi-transit trade is not part of the Dutch trade figures, but is included in the European trade figures on Dutch trade (Eurostat). See also the term: transit trade.

Re-exports

Re-exports involve imported foreign goods which, after being imported into the Netherlands, undergo little or no significant processing before being exported from the Netherlands again. Unlike in quasi-transit trade, the goods are temporarily owned by a resident enterprise while in the Netherlands. Re-exports and domestic exports combined constitute the basis of total Dutch export figures.

Royalties

Royalties are remuneration payments for the ongoing use of someone else’s intellectual property rights. Examples of those rights include copyrights, trademark rights and patent rights.

Special Purpose Entity (SPE)

Subsidiaries of foreign enterprise groups which are established in the Netherlands where resources are collected from abroad and which, on their own account, lend funds abroad. Netherlands-based SPEs manage participations, royalties or film rights for the parent companies and/or act as important intermediaries in the financing activities of the parent companies in the context of mergers, acquisitions and capital increases. SPEs are typified by carrying out huge income and asset transactions which bear no comparison to their productive activities in the Netherlands. SPEs are usually established in the Netherlands for the purpose of gaining tax advantages, either in the Netherlands or in the country of the parent company.

Two-way trader

An enterprise or business establishment which both imports and exports either goods or services. This is unlike what is called a one-way trader, which is either a one-way importer or a one-way exporter.

Value added

The gross value added equals the production minus intermediate consumption, excluding deductible VAT.