Environmental priorities to support the greening of the European Semester and integration of environmental priorities

Supporting the integration of environmental considerations into the European Semester was the central objective of this consultancy, which provided analytical evidence to strengthen the role of environmental taxation within the European Union’s economic governance framework. The work contributed to the implementation of the “polluter pays” principle by assessing the potential of environmental taxes to address environmental externalities while supporting climate and sustainability objectives.

The consultancy included a comprehensive mapping of environmental tax instruments with the greatest potential to reduce environmental impacts, drawing on literature reviews, policy analysis and assessments of cost-effectiveness, behavioural responses and alignment with EU environmental priorities. In addition, the project evaluated the level of implementation of environmental taxes across EU Member States, identifying enabling factors, barriers and best practices through country-level assessments and comparative analysis.

The work also examined the potential environmental, economic and social impacts of introducing new environmental taxes, including their effects on competitiveness, consumer behaviour and income distribution. Through stakeholder consultations, surveys and expert engagement, the project generated policy-relevant recommendations to support the design and implementation of environmental taxation measures and strengthen the coherence between fiscal policy, environmental objectives and sustainable economic development across the European Union.