OECD Environmental Performance Reviews: Slovenia 2026

Executive summary

Slovenia has successfully decoupled several environmental pressures from economic growth

Over 2010-2024, energy supply, emissions of greenhouse gases (GHGs) and major air pollutants declined while economic growth remained resilient. Freshwater abstractions and municipal waste generation grew more slowly than gross domestic product. Slovenia performs above the EU average on most Sustainable Development Goals, except for climate action due to high related economic losses.

Although Slovenia has the highest share of protected land in the OECD, biodiversity remains under threat

Slovenia has already exceeded the 2030 target for protected terrestrial areas, with 40% of land protected, but marine protection remains limited to 5%. Agriculture, urbanisation and modification of water bodies continue to exert pressure on biodiversity, with 60% of habitats and half of species of conservation importance in an unfavourable state. Encouraging biodiversity-friendly farming practices, removing perverse incentives and boosting forest resilience are key priorities.

Slovenia enjoys good quality water resources…

Freshwater resources are generally abundant and of good quality, but agriculture pressures persist. Pesticide consumption and nitrate levels have declined, but levels exceed thresholds in areas with a high share of agricultural land. In addition to expanding targeted agri-environmental payments to reduce agricultural pressures on water quality, greater use of economic instruments would improve cost effectiveness and better reflect the Polluter Pays Principle.

…but needs to close compliance gaps for wastewater collection and treatment

The country has made significant progress on wastewater collection and treatment but still lags behind other OECD Members. Further efforts are needed to comply with the EU Urban Wastewater Treatment Directive. Achieving compliance will require continuing to mobilise significant investment, but high investment needs are poorly aligned with technical and financial capacity, notably for small municipalities. Promoting co-operation or consolidation between service providers where feasible would improve cost effectiveness of investments and efficiency of service delivery.

The country performs well on recycling, but municipal waste is increasing

Slovenia is an EU leader in recycling and composting, which accounted for over 70% of municipal waste treatment in 2023. However, municipal waste continues to rise, highlighting the need for stronger waste prevention measures, including through the ongoing reform of the extended producer responsibility system. Setting goals and indicators would help track progress towards a circular economy.

Making the most of EU funds and greening the tax system are essential to boost green investment

Slovenia allocates a large share of EU funds over 2021-2027 to green measures, with priority on modernising railways and managing flood risk. However, it is critical to accelerate absorption, supported by public procurement reforms, to boost green investment. Since the mid-2010s, revenue from environmentally related taxes fell significantly due to fuel tax cuts and the suspension of the carbon tax over 2022‑2023. Slovenia implemented various measures to mitigate the effects of high energy prices. However, these were costly, insufficiently targeted and some limited incentives for low-carbon investment. Although carbon prices cover a large share of emissions, they do not provide consistent signals across sectors and fuels. While achieving climate goals requires higher carbon prices, Slovenia should better target support for energy-poor households, avoiding energy price support measures.

Climate impacts are intensifying, but adaptation responses are still nascent

The 2023 floods underscore the need for stronger resilience measures. In addition to flooding, the country faces droughts, wildfires, urban heatwaves, and increasing risk of landslides and erosions. Slovenia has the highest climate-related economic losses in the EU as a share of GDP and low insurance coverage. Adaptation efforts have accelerated with the adoption of the 2025 Climate Law, which mandates climate‑risk assessments. However, climate risk data must be consistently integrated into spatial planning, permitting and infrastructure decisions. Targeted technical support across all levels of government is essential. Climate resilience needs to shift from a reactive approach focussed on disaster recovery towards proactive risk reduction.

GHG and air pollutant emissions have declined, but meeting ambitious targets requires significant effort

While the country met past targets for GHG and air pollutant emissions, emissions reductions will need to accelerate considerably to meet future targets. The required pace of emissions reductions would need to be two to three times faster than annual reductions achieved between 2008 and 2023. The Climate Act strengthened governance arrangements and advanced the net-zero target from 2050 to 2045, five years ahead of the EU collective target. However, the Act lacks key provisions such as a commitment to phase out fossil fuels. Achieving GHG and air pollution targets depends on fully implementing – and strengthening – measures under the National Energy and Climate Plan and the National Air Pollution Control Programme.

The power sector must transition faster to a low-carbon, climate-resilient system

The power sector is highly vulnerable to climate risks, compromising power production from hydro. Slovenia must accelerate solar and wind deployment by addressing grid bottlenecks, streamlining permitting and balancing renewable expansion with biodiversity and nature protection. Sharing benefits from renewable projects with communities could ease local opposition. Subsidies to coal are increasingly costly and slow the transition to cleaner alternatives. The country should base decisions on nuclear expansion on a comprehensive cost-benefit analysis, taking into account its contribution to meeting the net-zero target.

Curbing transport emissions should be a priority

The transport sector is the largest contributor to GHG emissions and a major source of air pollution. The country’s high car dependency, low use of public transport and entrenched policies make addressing transport emissions especially challenging. Reforming fiscal incentives that encourage car use, investing in public transport and scaling up electric vehicles and charging infrastructure are crucial. Ljubljana’s progress in reducing car dependency offers a model for other cities.

Agriculture is highly vulnerable to climate risks and is not on track to meet emissions targets

The agriculture sector faces increased climate risks due to more frequent and severe droughts, compounded by extreme weather events and pests. Scaling up capacity building and advisory services would further support resilience measures, especially for the large number of small family farms. Building on the reform of the agricultural compensation framework, the country could further align incentives with resilience measures.

Agriculture is a key contributor to air pollution and GHG emissions, accounting for nearly all ammonia emissions and 11% of GHG emissions. Phasing out environmentally harmful subsidies, increasing targeted financial support and strengthening demand-side measures would help curb emissions. Declining forest carbon sink capacity highlights the need for enhanced co‑ordination among small-scale private forest owners and wider adoption of sustainable forest practices.