EU Industrial Emissions: Costs, Trends, and Policy Impacts

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Air pollution from Europe’s major industries continues to harm the environment, climate, and human health. An updated analysis from the European Environment Agency shows the economic cost of this pollution has fallen by nearly a third over the last decade. The report highlights that a small subset of the most polluting plants, largely coal-fired power facilities, accounted for about half of the total damage.

The 2024 update of the EEA report Health and Environmental Costs of Industrial Air Pollution in Europe provides the latest assessment of trends in the environmental and health consequences of industrial air pollution across Europe. It focuses on the 10,000 largest sites in Europe from 2012 to 2021, with these facilities regularly reporting their emissions and pollutant data to the European Industrial Emission Portal.

In 2021, the five member states with facilities contributing the highest external costs were Germany, Poland, Italy, France and Spain. When costs are compared to GDP, indicators of relative performance per unit of national economic output place Bulgaria, Poland, Estonia, Greece and Cyprus in the top five for cost efficiency concerns.

Location maps show the major polluting plants in Europe in 2021 as cataloged by the EEA.

The analysis reveals that the cost of air pollution from Europe’s largest industrial facilities is substantial, averaging between €268 billion and €428 billion annually. In 2021, these costs represented about 2% of EU GDP. Notably, a very small share—about one percent (107 facilities), primarily coal-fired plants—generated half of the total damage.

Cost reduced by 33% in ten years

The EEA also notes a marked decline in environmental and health costs tied to European industry between 2012 and 2021,amounting to a decrease of roughly one-third. Much of this improvement derives from reforms in the energy sector, which accounted for the majority of the decline—approximately 80%—aided by policies that promote best available techniques, a shift to renewable energy, and cleaner fuels.

The European Green Deal supports a transition toward greener and more digital industry in the region. The Industrial Emissions Directive has undergone review, and the new Industrial Emissions Portal Regulation (IEPR) has been approved. The aim is to push European industry toward decarbonisation, zero pollution, a circular economy, and ongoing innovation.

Also, tightening the EU Air Quality Directive is expected to bolster these efforts by aligning contamination limits more closely with World Health Organization health guidelines.

The EEA is preparing a second zero pollution monitoring and outlook report in collaboration with the European Commission for release later in the year. To illustrate the challenges and opportunities in the EU energy transition, this year’s report will map the 100 most polluting large combustion plants in the EU.

Note: Reference work is available from the European Environment Agency publications portal and related materials. These items are cited for context and attribution within this synthesis.

End note: The environmental department has been documenting and sharing data through official channels to support transparent assessment and policy planning.

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