Environmental taxes in Croatia and the European Union

According to Eurostat data published in early July, revenues from environmental taxes in Croatia increased from EUR 0.6 billion in 1995 to EUR 2.3 billion in 2022, growing at an average annual rate of 5.8%. The majority of this growth has been generated by taxes on energy products, while taxes on transport, pollution and natural resources contribute to only a smaller share. The share of revenues from environmental taxes in GDP equalled 3.3%, which is one of the highest shares in the Union, exceeded only by Greece and Bulgaria. These trends suggest that the process of separating economic growth from demand for fossil fuels in Croatia is much slower than the EU average. Namely, a high share of revenues from environmental taxes in GDP, especially those related to energy products, reflects continued dependence on fossil fuels. This fact implies that measures for promoting energy efficiency and transition to renewable energy sources have not been implemented to the desired levels of efficiency or range compared to other EU members.