During the 2000s, Austria experienced a robust performance on many economic and social indicators and continued to improve its overall environmental performance. This chapter provides a snapshot of some key environmental trends in Austria over the decade. It highlights some of the main environmental achievements and the remaining challenges on the path towards a greener economy and sustainable development. The chapter briefly describes Austria’s progress in reducing the carbon, energy and material intensities of its economy; in managing its natural asset base, including its water and biodiversity resources; and in improving the environmental quality of life.

Since 2000, Austria has consolidated and further developed what was already a sound environmental policy framework. This chapter reviews the main strategies and initiatives that were launched during the decade in the areas of sustainable development and environmental management. It examines Austria’s environmental governance, the regulatory framework for environmental protection, and the activities to ensure compliance with environmental requirements. The chapter also reviews the mechanisms in place to improve horizontal and vertical co-ordination, and the instruments used to systematically evaluate the environmental impacts of economic and sectoral policies. Progress in promoting environmental democracy, through open access to information and improved public participation in decision making, is also discussed.

Austria has launched several initiatives related to green growth. This chapter examines Austria’s use of taxation policy to pursue environmental objectives and progress in removing fiscal incentives that can encourage environmentally harmful activities. It discusses public and private investment in environment-related services and infrastructure, as well as the use of subsidies to encourage environment-friendly investment. The growth of an internationally competitive environmental goods and services sector is examined along with its potential to serve as a source of economic growth and jobs. Finally, the chapter reviews Austria’s efforts to mainstream the environment in development co-operation programmes.