Romania leads EU in environmental tax revenue growth for 2024

Romania has achieved remarkable success in 2024 by recording the highest growth in environmental tax revenues among EU countries, with an impressive increase of 21.7%. This achievement places Romania at the forefront of environmental fiscal responsibility in the European Union.

In 2024, the total revenue from environmental taxes across the EU rose to €371.9 billion, reflecting an overall growth of 6.1% compared to the previous year. This translates to an increase of €21.4 billion from 2023, when the revenues were €350.4 billion.

While Romania excelled, other countries also saw notable advancements. Lithuania reported a 13.9% increase, and Poland followed closely with a 12.7% growth in their environmental tax revenues. In contrast, several nations, including Sweden and Slovakia, experienced declines in their environmental tax revenues, with Sweden seeing a drop of 17.7%.

The contributions from corporations to the growth of environmental tax revenues across the EU were generally modest at 2.8%, but Romania stood out with a significant contribution of 19.2%. Hungary and Latvia also made notable contributions, at 14.8% and 13.2%, respectively.

The main source of environmental tax revenue in the EU was energy taxes, which amounted to €287 billion in 2024, up from €269.3 billion in 2023. Transport taxes also saw a rise, generating €67 billion this year, compared to €64 billion in 2023.

Despite the positive trends in some areas, the share of environmental taxes in the EU's GDP has decreased from 2.5% in 2014 to 2.1% in 2024. Similarly, the proportion of environmental tax revenues in total public tax and social contribution revenues has fallen from 6.1% to 5.1% over the same period. Nonetheless, Romania's achievements in environmental taxation demonstrate a proactive approach to fiscal policy and environmental responsibility.