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Brussels launches plan to strengthen Europe’s social safety net amid economic change

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Environmental tax revenue across the European Union increased by 6.1% in 2024, reaching €371.9bn, according to new figures from Eurostat. The total was up €21.4bn from

€350.4bn in 2023.

However, the latest data shows that environmental taxes have become a smaller part of the EU economy over the past decade. Their share of gross domestic product (GDP) fell from 2.5% in 2014 to 2.1% in 2024. Over the same period, environmental taxes accounted for a smaller proportion of total government revenue from taxes and social contributions, declining from 6.1% to 5.1%.

Energy taxes remained by far the largest source of environmental tax income, generating €287.0bn in 2024, compared with €269.3bn a year earlier. Transport taxes brought in €67.0bn, up from €64.0bn in 2023, while taxes on pollution and the use of natural resources rose slightly to €17.9bn from €17.2bn.

 

The figures, published by Eurostat, show that environmental tax revenues increased in 22 of the EU's member states during 2024.

Romania recorded the strongest annual growth, with revenues rising by 21.7%. Lithuania followed with an increase of 13.9%, while Poland saw growth of 12.7%. Hungary was also among the strongest performers, reporting a 12.2% increase.

Five EU countries recorded declines in environmental tax revenue compared with the previous year. Sweden experienced the largest fall, down 17.7%, followed by Slovakia (-6.1%), Finland (-3.8%), Greece (-3.7%) and Bulgaria (-2.3%).

 

The data forms part of Eurostat's latest release on environmental tax statistics, which tracks revenues from taxes designed to encourage more sustainable use of energy, transport and natural resources.