Energy Crisis, War Inflation Drive Down Austria’s CO2 Pollution

(Bloomberg) -- Austria slashed its greenhouse gas pollution in 2022 despite producing more goods as its industrial economy responded to the energy crisis kicked off by Russia’s war in Ukraine.

Most Read from Bloomberg

• China Evergrande Group Files Chapter 15 Bankruptcy in New York

• ‘Poor Man’s Cocaine’ Costing $3 a Pill Threatens to Proliferate

• Goldman Plans Hiring Spree to Fix Lapses After Increased Fed Scrutiny

• China’s Hidden Financial Dangers Erupt With Shadow Bank Crisis

• Niger Soldiers Killed in Attacks by Armed Group, Ecowas Says

Carbon dioxide emissions fell by 6.4%, or 5 million tons — equivalent to the volume of pollution emitted by about 12 natural gas plants — despite economic growth of just under 5%, according to the Environment Agency Austria.

It’s the first time Austria’s agricultural, building, industrial and transport sectors all managed to cut pollution.

“Emissions are now falling not just in forecasts but in reality,” Leonore Gewessler, Austria’s climate and energy minister, said in a statement.

European Union members are legally required to reduce emissions by 2030 or potentially face billions of euros in fines. Austria had pledge to cut its emissions by almost half compared with 2005 levels. The 2022 reduction moved the country 28% toward that goal.

Austrian industry led the decline, with a 7.2% drop in emissions, equivalent to more than 2 million tons of carbon dioxide handled by the EU’s emissions trading system. Last year’s energy crisis, which created record inflation, forced many companies to lower fuel consumption and become more efficient.

Most Read from Bloomberg Businessweek

• The Legendary, Wildly Profitable QQQ Fund Makes No Money for Its Owner

• ‘Don’t You Remember Me?’ The Crypto Hell on the Other Side of a Spam Text

• Brookfield Chases Rivals for Private Equity’s New Money-Spinner

• Sam’s Club’s War Against Costco Started With $1.38 Hot Dog Combo

• Labor Shortage Makes Immigration a Tough Topic for Republicans in Iowa

©2023 Bloomberg L.P.