Bulgaria has recorded a sharp increase in revenues from carbon-related taxes over the past several years, driven by both higher tax rates and a broader application of climate levies. According to the latest Eurostat data, state income from carbon dioxide taxes rose from just over €85 million in 2017 to nearly €1.1 billion in 2023, marking an increase of more than twelvefold in six years.
These taxes, imposed on the carbon content of fossil fuels, form part of the European Union’s wider framework of environmental and energy taxation. Their growing importance is evident not only in Bulgaria but across the EU, where carbon pricing has become an increasingly central fiscal tool for emissions reduction.
At the EU level, the role of carbon dioxide taxes within overall energy taxation has expanded significantly. In 2017, carbon taxes accounted for only 6% of total EU energy tax revenues, but by 2023 their share had risen to 19.7%. Over the same period, total EU revenues from carbon taxes more than tripled, increasing from €15 billion to €51 billion.
The distribution of carbon tax payments also illustrates their economic impact. In 2023, businesses contributed the vast majority, accounting for 76.4% of total revenues, while households paid 22.3% and non-residents just 1.3%.
By sector, energy supply companies were the largest contributors, generating 30.1% of carbon tax revenues through activities such as electricity, gas, steam and air-conditioning supply. Manufacturing followed closely with 29.4%, highlighting how climate taxation is becoming increasingly concentrated in energy-intensive industries.