Environmental tax revenue in the European Union reached €341.5 billion in 2023, reflecting a 2.1 per cent increase from the €334.6 billion recorded in 2022, according to data published on Wednesday by Eurostat.

Despite the annual rise in revenue of €6.9 billion, the share of environmental taxes in the EU’s gross domestic product (GDP) continued its long-term decline.

In 2010, environmental taxes accounted for 2.4 per cent of GDP, whereas by 2023, that figure had fallen to 2.0 per cent.

The share of environmental taxes in total government revenue from taxes and social contributions also dropped over the same period, from 6.3 per cent in 2010 to 5.1 per cent in 2023.

“These figures underline a structural shift in the role of environmental taxation in the EU’s overall fiscal framework,” Eurostat said in its accompanying commentary.

At the EU level, corporations contributed the largest share of environmental tax revenue in 2023, accounting for 49.4 per cent of the total.

Of this, 23.6 per cent came from companies in the manufacturing, construction, mining, and utilities sectors, while the services sector contributed 25.8 per cent.

Households were responsible for 48.3 per cent of environmental tax revenue.

In 15 EU member states, households paid more than 40 per cent of total environmental taxes, ranging from 41.5 per cent in Hungary to 60.3 per cent in Ireland.

At the national level, corporate contributions made up around half of total environmental tax revenues in most countries.

The highest shares were observed in Czechia (81.2 per cent), Estonia (80.3 per cent), and Romania (79.1 per cent), while the lowest shares were recorded in Austria (33.6 per cent), Luxembourg (34.9 per cent), and Ireland (38.0 per cent).

In most EU countries, non-residents contributed only a small share of environmental tax revenue.

However, in Luxembourg, non-residents accounted for 48.7 per cent of environmental tax income, followed by Malta with 17.4 per cent and Austria with 14.1 per cent.

Eurostat’s analysis provides further insight into the evolving structure of environmental taxation in Europe, as countries seek to balance climate objectives with sustainable fiscal policy.