Over the past six years, revenue from carbon emission-related taxes in the European Union has significantly increased. In 2017, this revenue amounted to €15 billion, while in 2023, it rose to €51 billion. The basis for taxation is the charge for the carbon dioxide content in fossil fuels used by taxpayers.
This is reported by Finway
Sharp Increase in the Share of Carbon Taxes in the Tax Structure
From 2017 to 2023, the share of carbon taxes in the overall energy tax structure increased more than threefold – from 6% in 2017 to 19.7% in 2023. This indicates the growing importance of environmental taxation in the EU’s financial system.
Main Taxpayers and Leading Sectors
In 2023, EU households paid 22.3% of all carbon taxes, while the overwhelming majority of tax revenue – 76.4% – came from businesses. An additional 1.3% of the income was provided by non-residents of the European Union.
The energy sector was the leader in terms of environmental tax payments. Specifically, the charge for carbon emissions in the gas, electricity, and steam supply sector accounted for 30.1% of the total carbon tax revenue received by the European budget.
The manufacturing industry came in second, contributing 29.4% of the paid carbon taxes.
In the European Union, revenue from carbon emission-related taxes increased from €15 billion to €51 billion from 2017 to 2023. This refers to the charge for the CO2 content in fossil fuels used by the taxpayer.