Accounting Information for Environmental Protection Expenditure and Sustainability Risk Screening: Evidence from EU Member States

Reliable accounting information is increasingly important for fiscal transparency and the assessment of sustainability-related public-finance issues. This study examines how harmonised Environmental Protection Expenditure Accounts (EPEAss) can support comparative analysis and preliminary risk screening in the EU public sector. Using EurostatEPEAsA, GDP and population data, the study applies a descriptive comparative design to analyse EU-level trends for 2018–2022, 2022 public-sector expenditure per capita across all 27 Member States, institutional-sector composition and CEPA-based functional allocation. Nominal EU environmental protection expenditure increased by 17.5% between 2018 and 2022, while its share of GDP remained close to 1.9%. Public-sector expenditure per capita varied substantially across Member States, with a median of EUR 314 and a coefficient of variation of 72.8%. Wastewater and waste management accounted for 69.7% of EU environmental protection investment. These patterns should be interpreted in light of accounting scope, institutional arrangements and infrastructure needs rather than as measures of environmental performance or fiscal risk. EPEA can enhance comparability, auditability and functional interpretation, but direct risk assessment requires additional evidence on liabilities, debt, asset condition, regulatory obligations and environmental outcomes.