This indicator shows financial effects and the amounts of environmental protection taxes and other duties for environmental pressures as well as use of natural resources in the Republic of Slovenia by individual year. Environmental protection taxes and other environmental pressure duties are economic instruments of environmental protection policy, the basic aim of which is to encourage reduction of environmental pressures by implementing a “polluter pays” principle. In accordance with the latter aim, expenses arising from damages caused to the environment are at least partially included in the production expenses. Regulatory decrees determine the methods of calculating the environmental pressure caused, expressed in so-called environmental load units (ELU) per individual polluter as well as the amount of tax and contribution, respectively, per individual environmental load unit (ELU). The main share of taxes and contributions is used directly for the purpose of environmental protection investments with the remaining share representing budgetary revenue.

Slovenia is made responsible for implementation of a “polluter pays” principle by the provisions of Article 174 of the EC Treaty and also within the Slovenian legal system, the provisions of the Environmental Protection Act (OJ RS, No 41/04, 17/06, 20/06, 28/06). The introduction of this principle has given rise to a significant source of financing environmental protection policy measures. Positive experience gained in the area of waste water collection and treatment with the introduction of tax exemption for water pollution as an earmarked source of financing the construction of infrastructure facilities and equipment were also included in the legal basis for waste disposal and CO₂ emissions taxes. Waste disposal tax exemptions represent an earmarked source of financing the construction of suitable networks of facilities and equipment for waste management as well as an important mechanism for achieving the set and prescribed targets. The latter are principally as follows: reduction in the quantity of waste generated at source; disposal of smallest quantities of waste possible and disposal of the most inert waste possible; reduction in the share of biodegradable waste; accelerating separated collection of individual urban waste portions; and a gradual increase in the scope of waste treatment and utilisation. The CO₂ emissions tax instrument is one of the key instruments included in the programme to reduce greenhouse gas emissions for the achievement of the objectives in this area and the fulfilment of the obligations undertaken with the signing of the Kyoto Protocol, ratified by Slovenia in June 2002. With the enforcement of the Waters Act, funds arising from water fees accumulate in the Waters Fund and are intended for financing water infrastructure. A certain share of funds collected via the lubricating oil and fluid use tax is also earmarked for rehabilitation of unregulated waste landfills and old burdens, while a share of environmental pollution tax on the generation of end-of-life vehicles is earmarked for implementation of public economic service for end-of-life vehicles management.

The increase in the annual amount of environmental taxes is principally the result of an increase in the level of taxes per environmental load unit and unit of product, respectively, as well as greater coverage of polluters (introduction of stricter conditions and new contributions), rather than a rise in environmental pressures.