Bulgaria has experienced a remarkable surge in carbon tax revenues, which have escalated from just over €85 million in 2017 to nearly €1.1 billion by 2023. This twelvefold increase is attributed to both heightened tax rates and an expanded application of climate-related levies, according to recent Eurostat data.
The implementation of these taxes is aligned with the European Union’s broader strategy on environmental and energy taxation, underscoring their growing significance not only within Bulgaria but also throughout the EU. Carbon pricing has evolved into a pivotal fiscal mechanism aimed at reducing emissions across member states.
At the EU level, the influence of carbon dioxide taxes within the overall energy taxation framework has intensified. In 2017, these taxes represented only 6% of total EU energy tax revenues, but by 2023, their share had increased to 19.7%. During this timeframe, total EU revenues from carbon taxes more than tripled, rising from €15 billion to €51 billion.
The economic implications of carbon tax payments are also noteworthy. In 2023, businesses accounted for a substantial portion of these revenues, contributing 76.4%, while households contributed 22.3%, and non-residents made up a mere 1.3%. This distribution highlights the fiscal burden placed primarily on commercial entities.
Sector-wise analysis reveals that energy supply companies emerged as the largest contributors to carbon tax revenues, generating 30.1% through activities such as electricity generation and gas supply. Close behind were manufacturing industries at 29.4%, indicating that climate taxation is becoming increasingly concentrated among energy-intensive sectors.
