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Europe's environmental taxes in decline, despite potentially crucial role

News Published 07 Feb 2022 Last modified 07 Feb 2023

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Photo: © Ivan Bandura on Unsplash

The European Green Deal acknowledges the crucial role of taxation in Europe’s sustainability transition. A new European Environment Agency (EEA) briefing, published today, shows that revenues from environmental taxes can support transition investments but future revenue streams from these taxes will erode as European Union (EU) environmental and climate policy objectives are achieved. The relative share of environmental taxes to total tax revenues has also declined in the past two decades.