Environmental tax revenue across the European Union rose 6.1% in 2024 to €371.9 billion, according to Eurostat. Cyprus collected €718.72 million over the same period, highlighting the continued role of environmental levies in national tax systems despite their declining share of the broader economy.
Cyprus Figures Reflect A Broad Revenue Base
In Cyprus, households generated €355.46 million in environmental tax revenue in 2024, while non-residents contributed €35.08 million. The total of €718.72 million also includes receipts from all economic activities and unallocated categories.
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Energy Taxes Remain The Core Of Environmental Revenue
Across the EU, environmental tax revenue increased from €350.4 billion in 2023 to €371.9 billion in 2024.
Energy taxes remained the largest source, generating €287.0 billion, up from €269.3 billion a year earlier. Transport taxes ranked second, rising to €67.0 billion from €64.0 billion, while taxes on pollution and natural resource use contributed €17.9 billion, compared with €17.2 billion in 2023.
The Long-Term Share Is Shrinking
Despite the increase in revenue, environmental taxes accounted for a smaller share of the EU economy than a decade ago, representing 2.1% of GDP in 2024, down from 2.5% in 2014.
Their share of total government revenue from taxes and social contributions also declined over the same period, falling from 6.1% to 5.1%, indicating that environmental tax receipts have not kept pace with the broader expansion of government revenues.
Revenue Rose In Most Member States
Environmental tax revenue increased in 22 EU member states in 2024. Romania recorded the strongest annual growth at 21.7%, followed by Lithuania at 13.9%, Poland at 12.7% and Hungary at 12.2%.
Five countries reported declines. Sweden recorded the steepest fall at 17.7%, followed by Slovakia (6.1%), Finland (3.8%), Greece (3.7%) and Bulgaria (2.3%).
