Vienna, 22 May 2026
Austria is currently not on track to meet its climate goals according to the OECD Environmental Review 2026 published on Friday.
The report warns that Austria could face compensation payments of up to €5.9 billion by 2030 if it misses its EU climate targets. These costs could rise to €9.5 billion by 2040 as EU emissions targets become stricter.
While Austria has reduced greenhouse gas emissions by 22% since 2010, it needs to accelerate reductions to meet the EU's 2030 target of a 48% cut compared to 2005 levels. The transport sector (29% of emissions) and industry (36%) are the biggest contributors.
Fossil fuels still account for about 60% of Austria's total energy supply, despite renewable sources generating 86% of electricity. The OECD recommends rapid reduction of environmentally harmful subsidies, estimated at €2.8 billion annually.
