Environmental subsidies and similar transfers statistics

Data extracted in March 2026

Planned article update: March 2027

Highlights

In 2023, EU environmental transfers represented 1.1% of GDP, ranging from 0.2% of GDP in Denmark and Finland to 3.8% of GDP in Italy.

In 2023, general government remained the primary source of environmental transfers at EU level.

In 2023, most environmental transfers were dedicated to energy (renewables and savings) and air and climate protection.

Total environmental transfers received by the national economy as percentage of GDP, 2023

This article provides an overview of data on environmental subsidies and similar transfers (ESST) in the EU. ESST are subsidies and other current transfers as well as capital transfers to activities protecting the environment (waste and waste water management for example) and managing natural resources (renewable energy production and materials recovery for example). Since 2025, the data collection is mandatory according to Regulation 691/2011. Data are available for 26 EU Countries, with Cyprus having a derogation to transmit data on ESST until end of 2027, and 2 EFTA countries. The data describe transfers paid either by the general government or non-resident institutional units (the Rest of the World) and received by national recipients of corporations, households, general government and non-profit institutions serving households (NPISH) institutional sectors and by the Rest of the World.

National environmental transfers ranged between 3.8% and 0.2% of GDP in 2023

In 2023, environmental transfers in the EU amounted to 1.1.% of GDP, with considerable variation acrossEU countries. Italy recorded the highest ratio at 3.8% of GDP, followed by Czechia (2.5%), Latvia (1.3%), Germany (1.2%) and Greece (1.2%). At the lower end of the distribution, Denmark and Finland both reported 0.2%, while Luxembourg (0.3%), Spain (0.3%) and Ireland (0.3%) also remained among the EU countries with the smallest relative levels of environmental transfers (see Figure 1).

Environmental transfers increased slightly in several EU countries between 2022 and 2023

Between 2022 to 2023, environmental transfers as a share of GDP rose in the EU from 1.0% to 1.1%. At country level, the largest increases were recorded in Czechia from 1.7% to 2.5% of GDP, and in Italy from 3.1% to 3.8%. From 2022 to 2023, some countries reported declines, notably Austria (from 1.3% to 0.8%), Bulgaria (from 0.7% to 0.4%) and Romania (from 0.9% to 0.6%)(see Figure 2) .

Environmental transfers are mainly paid by general government

In 2023, general government remained the primary source of environmental transfers at EU level and in most reporting countries. Austria and Sweden reported that all environmental transfers were funded by general government, while Luxembourg also recorded shares exceeding 99%.

In contrast, only 4 countries reported significant inflows of environmental transfers from abroad, including EU funds. In Lithuania, 73% of environmental transfers originated from foreign sources, while Bulgaria and Romania reported shares of 66% and 64% respectively. Estonia also received over 60% of its environmental transfers from abroad (see Figure 3).

Corporations, general government and households are the main recipients

There are clear differences across European countries in the way governments distribute environmental transfers among institutional sectors. On average in the EU, a substantial share of ESST went to households and corporations. By contrast, direct transfers within the general government sector or to non-profit institutions remained relatively limited in most countries. However, national patterns varied widely. In Italy, Austria and Finland, households received a dominant share of environmental transfers (83.2%, 48.4% and 43.7% respectively). In contrast, Portugal, Croatia and Spain allocated a much larger proportion of ESST to corporations (84.5%, 82.6% and 65.1% respectively). In Slovakia, the Netherlands and Malta the share was higher for intra-governmental transfers (86.2%, 51.8% and 51.2% respectively). Finally, Luxembourg and Denmark showed notable shares of transfers sent abroad, reflecting international environmental financing or cross-border mechanisms (see Figure 4)

Most transfers to corporations are paid to a limited number of economic activities

Environmental transfers to corporations are highly concentrated in a few key economic activities, with the energy sector (electricity, gas, steam and air conditioning supply) consistently receiving the largest share in many countries. Another major recipient of ESST is 'water supply, sewerage, waste management and remediation activities', which accounts for a substantial portion of transfers in many countries. In several countries, manufacturing and agriculture, forestry and fishing also receive notable shares.

Corporations operating in the energy sector received more than 80% of transfers paid to corporations in Portugal, Spain, Czechia and Greece. Corporations operating in ’water supply; sewerage, waste management and remediation activities’ received more than 50% of transfers paid to corporations in Bulgaria, Croatia and Slovakia.

'Agriculture, forestry and fishing' activities received more than 50% of transfers paid to corporations in Ireland, Latvia and Sweden. 'Manufacturing' activities were paid a significant (more than 30%) share of corporations’ ESST in Denmark Luxembourg and Austria.

Overall, the distribution reflects a mix of structural economic differences and policy priorities (see Figure 5)

Most environmental transfers are dedicated to energy (renewables and energy savings) and air and climate protection

Environmental transfers received by the national economy can also be analysed according to their environmental purpose. In 2023, transfers were mainly concentrated in a few key purposes, notably energy from renewable sources, energy savings and management, and air and climate protection, although the relative importance of each category varied considerably across countries. Support for energy from renewable sources accounted for a very large share of transfers in several countries, reaching very high levels in Spain (around 70%) and Denmark (around 65%). Energy savings and management dominated in countries such as Italy (around 90%) and Greece (around 45%), and also represented a substantial share in France (around 30%) and Ireland (around 20%). Meanwhile, air and climate measures were particularly prominent in Sweden (over 50%) and Luxembourg (around 45%). Other environmental purposes also played a significant role in specific countries. Wastewater and water resources accounted for a large share in Bulgaria (around 35%) and Slovenia (around 35-40%), while waste, materials recovery and savings were especially important in Malta (around 40%) and Slovakia (around 30%), see Figure 6.

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. Since 2025, ESST is a part of the Regulation (EU) 691/2011 and require data reporting on an annual basis. ESST are based on the Environmental-Economic Accounting 2012 Central Framework (SEEA-CF 2012) and the European System of National and Regional Accounts (ESA 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) – ESA 2010 §4.112 and Capital transfers (D.9) – SEA 2010 §4.145 and §4.146. 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 purposes.

Note: The SEEA-CF 2012 is currently under revision by the UN Statistical Commission expected in the coming years.

Note: ESA 2010 is also under revision following the adoption of the 2025 SNA.

The Classification of environmental purposes (CEP) has been adopted as an international classification in 2024, The CEP classification is built on the two functional classifications used in the current SEEA-CF monetary environmental accounting , CEPA 2000 mad CreMA 2008. Environmental subsidies and similar transfers are paid by general government (S.13 as in ESA 2010 §2.111) and the rest of the world (S.2 as in ESA 2010 §2.131). Those transfers are received by institutional sectors within the economy (general government; corporations – S.11 and 12 in ESA 2010 §2.45 and 2.55; households – S.14 in ESA 2010 §2.118; and non-profit institutions serving households – S.15 in ESA 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 are part of the European environmental economic accounts framework. ESST data reporting is required through Regulation 691/2011, annex VIII.

Explore further

Database

Environment (env), see:

Environmental subsidies and similar transfers (env_esst_cep)

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

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_CEPGGCP)

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_CEPRW)