Full VAT on Meat Could Cut EU Environmental Damage by Up to 6%, Study Finds
January 20, 2026
A study by the Potsdam Institute for Climate Impact Research shows that full VAT on meat like beef, pork, lamb, and chicken could quickly lower the EU's environmental damage by 3% to 6%. This would come at a low cost to households—around €26 (£23) yearly if tax revenues are given back to citizens. Animal-based foods contribute most to the EU’s ecological footprint linked to diets. They cause nearly a quarter of greenhouse gas emissions, over half of biodiversity loss and phosphorus pollution, and about three-quarters of water use. Despite this, 22 out of 27 EU countries charge a lower VAT rate on meat than on other goods. This means consumers do not feel the true environmental cost of eating meat. The paper, published in Nature Food, also compared a carbon price on food to full VAT. Both could raise prices and lower consumption, but carbon pricing is more complex. For instance, Ireland charges zero VAT on meat while its general VAT rate is 23%. The UK has zero tax on raw meat but 20% on cooked or processed meat. Other EU countries vary from 11 to 20 points less VAT on meat compared to the general rate. Only Bulgaria, Denmark, Estonia, Latvia, and Lithuania tax meat at the full standard VAT rate. If all EU countries ended tax breaks on meat, greenhouse gas emissions could drop by about 29.9 million tons yearly, nearly 5% of the total. While average food spending per household would rise by €109 (£95) before redistribution, paying the extra tax back to citizens could lower the net cost to €26. A carbon price of €52 (£45) per product could further reduce costs to €12 yearly and improve the environment more but is harder to implement. Study author Charlotte Plinke said, “Our numbers show the policies we investigated can be effective, but they also reveal that we do not yet fully price in the environmental impacts of meat.” She added that clear information and transparency about goals and revenue use is crucial.
Read More at Theguardian →
Tags:
Meat Consumption
Vat
Environmental impact
Eu
Tax Policy
Carbon pricing
Comments