State Budget 2027 trims environment and energy spending as recovery funds wind down

The 2027 State Budget proposal gives the environment and energy area total consolidated spending of about €2.27 billion, 3.2% less than last year. The fall comes from the shrinking weight of the Recovery and Resilience Plan (PRR). Without PRR spending, the allocation would be €1.75 billion, a 15.4% increase on the 2026 estimate. The Environmental Fund is central: it accounts for €503.6 million of current transfers in revenue, and €505.8 million of sales come from auctions of greenhouse gas emission allowances under the EU Emissions Trading System. Parliament debates the budget in general terms on 27 and 28 October, with the final vote on 24 November.