Environmental subsidies and similar transfers statistics

Data extracted in April 2025

Planned article update: April 2026

Highlights

In 2022, environmental transfers in the EU ranged from 0.1% of GDP in Denmark to 1.4% of GDP in Estonia and Austria.

In 2022, corporations, general government and households continued to be the main recipients of environmental transfers in the EU.

In 2022, most environmental transfers were dedicated to environmental protection rather than natural resource management.

Source: Eurostat (env_esst_gg), (env_esst_rw)

This article provides an overview of the latest data on Environmental Subsidies and Similar Transfers (ESST) whenever the purpose is to protect the environment or manage natural resources (’environmental transfers’), such as for installing cleaner energy or for keeping nature reserves, or for research on environmental issues. Data originates from a Eurostat voluntary data collection covering 19 EU countries and 2 EFTA countries. This article includes financing received for environmental purposes by corporations, households, NPISH or other countries and paid by the general government of each country or from abroad (including EU funds).

National environmental transfers ranged between 1.4% and 0.1% of GDP in 2022

For the 19 EU countries and 2 EFTA countries reporting 2022 data to Eurostat, environmental transfers range from 1.4% of GDP in Austria and Estonia to 0.1% in Denmark (note: Danish data refers to 2021). Countries like Latvia (1.2%), Romania (0.9%) and Malta (0.8%) also reported relatively high levels, while Luxembourg and Portugal remained below 0.3%. (see Figure 1).

Figure 1: Total environmental transfers received by the national economy as percentage of GDP (%), 2022
Source: Eurostat (env_esst_gg), (env_esst_rw)

Environmental transfers remained relatively stable from 2018 in 2022 in almost all countries

For most countries, environmental transfers as percentage of GDP remained relatively stable between 2018 and 2022. However, some fluctuations were observed. Latvia's transfers declined from 1.6% in 2018 to 1.2% in 2022. Finland and Ireland maintained relatively stable levels, while Romania dropped from 2.9% in 2019 to 0.9% in 2022.

Figure 2: Total environmental transfers received by the national economy as percentage of GDP (%), years 2018-2022
Source: Eurostat (env_esst_gg), (env_esst_rw)

Environmental transfers are mainly paid by general government

In countries like Austria, Netherlands, Croatia and Belgium, over 98% of the environmental transfers were paid by the general government. Conversely, in countries such as Romania, Estonia and Bulgaria, the contribution by the rest of the world is larger than the contribution by general government. In Lithuania and Latvia, respectively, 59% and 46% of environmental transfers are received from abroad(included EU funds) while Sweden and Malta received only 13% and 7% from abroad.(see Figure 3).

Figure 3: Distribution of environmental transfers received by the national economy from the general government and abroad (%), 2022
Source: Eurostat (env_esst_gg), (env_esst_rw)

Finland and Slovenia households are receiving the highest share of environmental transfers in 2022

Corporations, general government and households are the main recipients of the transfers paid by general government (see Figure 4). Spain continued to report the highest proportion, with 98% of its environmental transfers allocated to corporations. Corporations received high share in Latvia 82%, in Estonia 77%, in Switzerland and in Norway 50%. Environmental transfers from general government to other sub-sectors of general government were also significant in Malta (59%), Belgium (39%), Romania (54%) and Ireland (43%). These environmental transfers usually occur when central government provide funds to regional authorities, which further distribute these funds to final beneficiaries, e.g. programmes for financing electrical vehicles. In 2022, Finland and Slovenia were the countries where households received higher share than corporations: in Finland, households received 48% of the environmental transfers while corporations received 20% in Slovenia, 72% of the environmental transfers are received by households against 26% for corporations. Households are also the main recipient of the environmental transfers in Austria (67%) and Lithuania (49%). These differences across countries reflect the different economic actors and policy instruments that national governments choose to use. Non-profit institutions serving households (NPISH) usually receive fewer environmental transfers than corporations and households. Environmental transfers received by NPISH in Austria in 2022 are considerably higher with 12% compared to other countries. On average for the reporting countries, environmental transfers received by NPISH represent 2.6% of the total environmental transfers paid by general government. Similarly, environmental transfers paid by the country governments to other countries are lower than environmental transfers to their national corporations and households. On average, environmental transfers to other countries represent 6% of total transfers. However, environmental transfers sent to other countries represent 39% of the total environmental transfers paid by general government in Norway and 12% in Sweden.

Figure 4:Environmental transfers paid to each institutional sector by the general government (as percentage out of total), 2022
Source: Eurostat (env_esst_gg)

Four economic activities account for most of environmental transfers paid to corporations

Environmental transfers to corporations can be further broken down by the economic activity of the corporation. Eurostat uses the statistical classification NACE Rev 2 (see Figure 5). In 2022, 'water supply; sewerage, waste management and remediation activities' and 'electricity, gas, steam and air conditioning supply' were the economic activities that continued to receive most environmental transfers from general government transfers in most countries. There is a significant raise for 'agriculture, forestry and fishing' and 'service sector (excluding wholesale, retail, transport and storage)'. Corporations operating in 'electricity, gas, steam and air conditioning supply' received more than 72%; of the environmental transfers from general government in Spain, Malta and Portugal. Corporations operating in 'water supply; sewerage, waste management and remediation activities' received 70% of the environmental transfers from general government in Bulgaria, 86% in Slovenia and 43% in Norway. Finland , Latvia and Sweden report environmental transfers in the category of 'Agriculture, forestry and fishing' more than 33%'. 'Manufacturing' and 'services (except wholesale and retail trade, transportation and storage)' are also frequent receivers. The economic activity 'manufacturing' received 23% of environmental transfers in Denmark and 21% in Luxembourg. Services (except wholesale and retail trade, transportation and storage) is the main economic activity receiving environmental transfers in any reporting country in Austria with 91% of the total.

Figure 5: Environmental transfers received by corporations broken down by economic activities (%), 2022
Source: Eurostat (env_esst_ggcp)

Several countries (Belgium, Netherlands and Switzerland) report environmental transfers in the category 'not elsewhere classified' (n.e.c.) due to the lack of data sources. This way of reporting affects the results shown in Figure 5. When excluding amounts of the category 'not elsewhere classified' and recalculating the totals and shares, the new results do not alter the main findings (see Figure 6). Activities 'water supply, sewerage, waste management and remediation activities' and 'electricity, gas, steam and air conditioning supply' remain one of the 4 main receivers of environmental transfers from general government (see Figure 6) as in 2022 also 'Agriculture, forestry and fishing' and 'Services (except wholesale and retail trade, transportation and storage)' received quite a significant amount of environmental transfers from general government in 11% and 14% in the total transfers paid to corporations.

Figure 6: EEnvironmental transfers received by corporations broken down by economic activities (%) - 'n e c ' discounted, 2022
Source: Eurostat (env_esst_ggcp)

Most environmental transfers are mainly about environmental protection

Environmental transfers serve 2 main environmental objectives: environmental protection (CEPA) and/or management of natural resources (CReMA) (See further explanation in data sources-methodology). In 2022, most environmental transfers concern environmental protection in most of the reporting countries (see Figure 7). In Sweden, Norway and Bulgaria over 83% of transfers concern environmental protection while in Spain 88% report most environmental transfers to management of natural resources. Romania and Slovenia reported a balanced transfer between both main objectives.

Figure 7: Distribution of environmental transfers received by the national economy, classified by environmental objectives (%), 2022
Source: Eurostat (env_esst_gg), (env_esst_rw)

Source data for tables and graphs

Environmental subsidies and similar transfers — figures and tables

Data sources

With environmental transfers, governments finance either measures to reduce the market price of certain products ('subsidy on product') or other types of measures to support economic activity or consumption ('current transfer') or finance environmental investments ('capital transfer'). Eurostat collects data on ‘environmental subsidies and similar transfers’ accounts (ESST) on a voluntary basis since 2017. ESST is based on Environmental-Economic Accounting 2012 Central Framework (SEEA-CF 2012) and the European System of National and Regional Accounts (SEA 2010) The concept of 'subsidies and similar transfers' refers to 'transfers' as covered in SEEA-CF 2012 § 4.136: “transactions in which one institutional unit (in this case, the government) provides a good, service or asset to another unit without receiving from the latter any good, service or asset in return as a direct counterpart”. These transfers may be classified depending on certain characteristics in: Subsidies (D.3) – SEA 2010 §4.30; Social contributions and benefits (D.6) – SEA 2010 §4.83; Other current transfers (D.7) – SEA 2010 §4.112-4.140 and Capital transfers (D.9) – SEA 2010 §4.145. Therefore, subsidies in this terminology are one specific type of transfers. Sometimes, term ‘subsidy’ is used as a synonym of ‘transfers’ or ‘subsidies and similar transfers’ (See SEEA-CF 2012 §4.137) Transfers that are part of the scope of ESST are those mentioned above that are “intended to support activities that protect the environment or reduce the use and extraction of natural resources” (SEEA-CF 2012 §4.138). The set of activities that are considered as ‘environmental’, thus included in the scope, are delineated by the classification of environmental protection activities (CEPA) and the classification of resources management activities (CReMA). CEPA is devoted to 'environmental protection', which refers to activities and actions which have as their main purpose the prevention, reduction and elimination of pollution and of any other degradation of the environment. CReMA is devoted to 'resource management', which refers to the preservation, maintenance and enhancement of the stock of natural resources and therefore the safeguarding of those resources against depletion (See SEEA-CF 2012§4.12-4.13). Environmental subsidies and similar transfers are paid by general government (S.13 as in SEA 2010 §2.111) and the rest of the world (S.2 as in SEA 2010 §2.131). Those transfers are received by institutional sectors within the economy (general government; corporations – S.11 and 12 in SEA 2010 §2.45 and 2.55; households – S.14 in SEA 2010 §2.118; and non-profit institutions serving households – S.15 in SEA 2010 §2.129) and granted to the rest of the world. In order to ease comprehension by the reader, rest of the world is also named 'Other countries' when referring to transfers received from abroad and ‘sent to other countries’ when referring to transfers paid to them by general government. Environmental subsidies and similar transfers paid by general government to corporations are further broken down according to activities using the NACE Rev 2 classification.

Context

The environmental subsidies and similar transfers accounts is part of the European environmental economic accounts framework. Regulation 691/2011, article 4 (pilot studies) and article 10 (report and review) refers to environmental subsidies as a candidate for a new mandatory account. Environmental subsidies and similar transfers accounts is now a module of the amended Regulation 691/2011 since November 2024.

Explore further

Database

Environment (env), see:

Environmental subsidies and similar transfers (env_esst)

Environmental subsidies and similar transfers from general government, by environmental activity, sector of recipient and ESA category of transfer (ENV_ESST_GG)

Environmental subsidies and similar transfers from general government to corporations, by environmental activity, ESA category of transfer and NACE Rev. 2 activity of recipient (ENV_ESST_GGCP)

Environmental subsidies and similar transfers from the Rest of the World to the domestic economy, by environmental activity and ESA category of transfer (ENV_ESST_RW)