Environment at a Glance: Austria
Table of contents
This country note features selected environmental indicators from the OECD Core Set, building on harmonised datasets available on OECD Data Explorer. The indicators reflect major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The OECD is working with countries and other international organisations to further improve the indicators and the underlying data. The text of this country profile is complementary to and has benefited from the OECD Environmental Performance Review of Austria 2026. Definitions of indicators can be found in the Reader’s Guide.
The small, open economy of Austria has a strong manufacturing base and exports high-value goods but depends on fossil-fuel imports. The country’s population enjoys relatively high living standards and is increasingly concentrated in large and mid-sized metropolitan areas, while most regions – characterised by mountainous landscapes and extensive forests – remain sparsely populated (OECD, Environmental Performance Review of Austria, 2026).
Only 32% of the territory lies below 500 metres above sea level. Therefore, the space available for settlements is limited to about 38% of the land area, essentially in river valleys and basins, which tend to be prone to natural hazards. As a consequence, population density is relatively high.
The variety of landscape, altitude and climate engenders a diversity of vegetation. Water is abundant. The country is a large exporter of timber, has important iron ore reserves and some deposits of minerals, lignite, oil and natural gas.
Between 2010 and 2024, Austria decoupled energy supply and CO2 emissions from economic growth, with faster declines in the 2020s, partly reflecting the economic slowdown (OECD, Environmental Performance Review of Austria, 2026).
The per person production-based and demand-based (or footprint, i.e. including emissions incorporated in imported goods) greenhouse gas (GHG) emissions have decreased since 1995, at a higher rate than the OECD average. They remain below the OECD averages, thanks to a largely renewable-based power sector. Demand-based emissions are higher than production-based ones, meaning that Austria is a net importer of GHG emissions embodied in its final demand (i.e. demand for goods and services by all residents).
Between 2010 and 2024, GHG emissions (excluding land use, land-use change and forestry, or LULUCF) fell by 22%. The sharpest decline has occurred since 2021, driven largely by the economic downturn, geopolitical tensions affecting energy prices and milder winters. Climate policies such as carbon pricing and subsidies for heating system replacement, public transport and electric vehicles also contributed. Emissions declined in all sectors, although progress was slower in industry and transport – the two largest consumers of fossil fuels and sources of domestic GHG emissions (OECD, Environmental Performance Review of Austria, 2026).
Since 2000 the share of fossil fuels in the energy mix of Austria has diminished, while the share of renewables has increased. Coal, peat and oil shale represented 8% of the total energy supply in 2024, oil 33%, natural gas 19% and renewables 38%. Austria is dependent on fossil fuel imports, mainly used in transport and industry. On the other hand, the country has made notable advances in its clean energy transition, with the phasing out of coal electricity production in 2020 and the aim to achieve a fully renewable electricity supply on an annual net basis by 2030 (OECD, Environmental Performance Review of Austria, 2026).
Austria’s electricity production is largely decarbonated, with 86% of renewables in 2024. While solar and wind power have expanded, hydropower remains the dominant renewable source (OECD, Environmental Performance Review of Austria, 2026).
Emissions of major air pollutants have continued to decline significantly over the last decade. Austria has met or exceeded its 2020 targets under European Union (EU) legislation for all five key pollutants: nitrogen oxides (NOx), sulphur oxides (SOx), fine particulate matters (PM2.5), non-methanic volatile organic compounds (NMVOC) and ammonia (NH3). It is on track to meet the stricter 2030 targets for all pollutants but NH3, whose emissions have remained relatively stable. Emission intensities, both per unit of GDP and per person, remain below the OECD average, but are higher than the OECD-Europe average for carbon monoxide and NOx.
Air quality is generally good, but transport, heating and agriculture remain key sources of air pollution in urban areas and valleys. Austria met all EU air quality limits in 2023; however, exceedances of the ozone target value still occurred. PM2.5 concentrations comply with EU standards but population exposure to PM2.5 is above the 2021 guideline value of 5 µg/m3 recommended by the World Health Organization (OECD, Environmental Performance Review of Austria, 2026). Regional differences are not very marked, ranging from 9.1 microgrammes/m3 in Tyrol to 12.3 in Vienna. Old biomass and fossil-fuel heating systems are the main contributors to PM emissions. Substantial subsidies have been provided to replace them with cleaner alternatives (OECD, Environmental Performance Review of Austria, 2026).
Despite a lack of data on freshwater resources and abstractions, water stress is not a pressing issue at the national level. Austria has ample freshwater resources and water quality ranks among the best in Europe. However, climate change, population growth and rising irrigation needs could create local water stress. Groundwater, which supplies irrigation and drinking water, is unevenly distributed. A large share of the country experiences increased drought frequency and intensity (OECD, Environmental Performance Review of Austria, 2026).
Austria is well advanced in wastewater treatment, with 95.5% of the population connected to a tertiary wastewater treatment plant. Major investments in water infrastructure over recent decades have ensured high-quality water and sanitation services. However, significant investment is still needed to maintain and upgrade an ageing infrastructure, secure drinking water supply and improve stormwater management (OECD, Environmental Performance Review of Austria, 2026).
Despite having an advanced waste management system, and a decline in municipal waste production during 2021-23, municipal waste generated per person remains among the highest in Europe, reflecting the country’s high level of income1. There has been a shift from disposal in landfills to thermal treatment due to a 2004 ban on landfilling of untreated municipal waste. Landfill bans, along with taxes on landfilled and incinerated waste, have created incentives for recycling. As a result, recycling and composting together accounts for about 62% of treatment (OECD, Environmental Performance Review of Austria, 2026).
Since 2021, domestic material consumption (DMC) per person appeared on track to meet Austria 2030 target, with a 16% reduction in DMC per person between 2021 and 2024. Material footprint is also moving towards the target, despite material footprint per person remaining well above DMC and the OECD average. This remains a major challenge as Austria generates 40% of its material footprint outside the country. By contrast, material productivity has increased alongside the OECD-Europe average and is above the OECD average. However, Austria related CE Strategy’s 2030 target of a 50% increase compared to 2015 may be more difficult to reach (OECD, Environmental Performance Review of Austria, 2026). Non-metallic minerals – which are mainly used in construction – made up over half of DMC in 2024, followed by biomass from agriculture and forestry. From 2019 to 2024, consumption of fossil energy carriers fell sharply as Austria increased the use of renewables. Consumption of non-metallic minerals fell slightly, with most of the decrease occurring in 2023 and 2024, a period of a downturn in the construction industry.
Austria is home to a diverse array of landscapes and wildlife. It houses about 45 000 animal species, of which almost 37 000 are insects and nearly 3 000 species of vascular plants.
About 60% of the country’s land is mountainous and 47% is covered by forests – one of the highest shares in the OECD. Landscapes range from Pannonian plains to high alpine regions, and from wetlands to forest areas. Its biodiversity has been shaped by human intervention throughout the ages, especially through agriculture, forestry, hunting and fishing.
Austria is an OECD leader in organic farming. However, despite extensive protected areas and eco-friendly farming, biodiversity remains under pressure. Among the main causes of biodiversity loss are habitat destruction, degradation and fragmentation, in particular sealing, settlements and transport infrastructure. Additional threats are the abandoning of traditional forms of land use and land use intensification (CBD, 2026).
Austria is also one of the few OECD countries to have almost reached the 2030 Global Biodiversity Framework (GBF) target of 30% of protected terrestrial areas. However, less than 3% of protected areas are under strict protection and many habitats and species still show poor conservation status. Although declining, land take and soil sealing still exert significant pressures on the environment, contributing to biodiversity loss and exacerbating flood risks and urban heat (OECD, Environmental Performance Review of Austria, 2026).
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
Austria has made strides in assessing the environmental dimensions of fiscal policy by adopting green budgeting practices. The share of expenditure with a positive (direct or indirect) climate impact has declined to about 8% in the 2025/26 budget. Meanwhile, following a tax reform, progress in expanding environment-related tax instruments has remained modest (OECD, Environmental Performance Review of Austria, 2026).
Taxation and pricing remain a relatively minor component of Austria’s environmental policy mix and tax structure. Environment-related taxes accounted for 1.9% of GDP in 2024 and 4.4% of total tax revenue, slightly below the respective EU averages but above the OECD averages. Most revenue comes from energy and vehicle taxes, while taxes on pollution and resources are negligible (OECD, Environmental Performance Review of Austria, 2026).
Austria has made progress in identifying subsidies that may harm the environment. On the other hand, support to fossil-fuel use, commuter subsidies and favourable tax treatment for company cars are major components of environmentally harmful subsidies. As in many OECD countries, fossil-fuel support has risen in recent years due to the government’s response to the 2022 energy-price crisis. Recent changes to commuting allowances and company-car taxation introduced incentives for low-emission company cars, biking and public transport commuting. However, tax rules still encourage car ownership and use, long-distance commuting and urban sprawl. Austria aims to eliminate such incentives from the federal budget by 2030. Additionally, Austria implemented the eco-social tax reform in 2022, which established a national emission trading scheme (ETS) for fossil fuels used outside the EU ETS (OECD, Environmental Performance Review of Austria, 2026).
While the reform has contributed to reducing emissions, current carbon pricing levels are likely insufficient to achieve the effort sharing regulation (ESR) target. In its first two years, the reform helped raise average effective carbon rate (ECR2) to EUR 97/tCO₂eq. in 2023, one of the highest in the OECD. In the same year, fuel excise taxes, and national and EU ETSs, covered nearly 80% of GHG emissions, well above the OECD average. However, energy tax concessions and temporary measures introduced during the 2022 energy price crisis weakened the overall price signal. Moreover, only 29% of emissions were priced above EUR 120/tCO₂eq. – the midpoint estimate of carbon prices needed by 2030 to stay on the net-zero pathway. While the ECR has likely risen since 2023 with a higher allowance price and the gradual removal of energy crisis measures, maintaining sufficiently high carbon prices will be essential to meet the 2030 and 2040 climate targets ETS (OECD, Environmental Performance Review of Austria, 2026).
With 2% of total government research, development (R&D) budget in 2025, environmentally related R&D is low by OECD standards, and fluctuating. By contrast, the share of renewables in public energy RD&D was above 30% during most of the 2000s, but has been steadily declining since the 2008 financial crisis, to reach 17.2% in 2024.
Austria is a relatively major player in environmentally related inventions. With 22.7 inventions per person by national residents in 2023, Austria is above the OECD average. The country is at the forefront of innovation in climate-mitigation technologies in steel decarbonisation (OECD, Environmental Performance Review of Austria, 2026). On the other hand, the share of environmentally related in total inventions is in line with the OECD average and remains just below 9%.
Austria’s development co-operation is rooted in human rights, partnership and responsibility principles. Geographically, it focuses on the European Eastern neighbourhood, sub-Saharan Africa and the Middle East. Austria’s total official development assistance (ODA) (USD 1.8 billion, preliminary data) decreased in 2025, representing 0.33% of GNI.
In 2023-24, Austria committed 35% of its total bilateral allocable ODA (USD 159.9 million) in support of the environment and the Rio Conventions, down from 38% in 2021-2022. The DAC average was 38%. Eighteen per cent of screened bilateral allocable ODA focused on environmental issues as a principal objective, compared with the DAC average of 11%. Thirty-one per cent of total bilateral allocable ODA (USD 139.6 million) focused on climate change overall (the DAC average was 35%), down from 34.5% in 2021-22. Austria had a greater focus on adaptation (26%) than on mitigation (16%) in 2023-24. Twelve per cent of screened bilateral allocable ODA (USD 55.6 million) focused on biodiversity overall, up from 7% in 2021-22 (the DAC average was 9%). Five per cent of screened bilateral allocable ODA (USD 20.9 million) focused on desertification overall, up from 3% in 2021-2022 (the DAC average was 4%). Austria committed USD 3 million in support of the conservation and sustainable use of the ocean in 2024, USD 0.8 million less than in 2023. The 2024 value is equivalent to 0.7% of bilateral allocable ODA (OECD, Forthcoming 2026).
References
Austria, E. A. (2025). Austria National Inventory Document. doi:https://unfccc.int/sites/default/files/resource/AT_NID-2025.pdf
CBD. (2026). Country profiles: Austria. Retrieved from https://www.cbd.int/countries/profile/?country=at
OECD. (2023). OECD Inventory of Support Measures for Fossil Fuels: Country Notes. OECD Publishing, Paris. doi:10.1787/5a3efe65-en
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OECD. (2026). Environmental Performance Review of Austria. Paris: OECD. Retrieved from https://www.oecd.org/en/publications/oecd-environmental-performance-reviews-austria-2026_520533a1-en.html
OECD. (Forthcoming 2026). Development Co-operation Profiles. OECD Publishing, Paris.
Umweltbundesamt . (2025). Klimaschutzbericht 2025. [Climate Protection Report 2025], Umweltbundesamt, Vienna. Retrieved from https://www.umweltbundesamt.at/studien-reports/publikationsdetail?pub_id=2613&cHash=8eeac146a3142f796d355043bb0c5dc9
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← 1. Break in series between 2019 and 2020: since 2020, data contains also municipal waste from all other sources than households, not collected by the municipal waste collection system, thus increasing the amount of waste generated and treated.
← 2. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.