Austria’s Klimabonus (Climate Bonus) scheme is expected to cost the government €1.96 billion this year, with the largest per capita benefits going to the regions of Burgenland and Carinthia.
The scheme, designed to offset environmental damage, provides every adult in Austria with a base payment of €145, regardless of location.
This amount increases in areas with limited public transport, with residents in Burgenland and Carinthia receiving €253 and €240 each. In contrast, those in regions with better infrastructure receive less: in Vorarlberg, the payment is €195, while in Vienna it is just €150.
When looking at the total share of funds, Lower Austria and Upper Austria receive the largest portions, with 20.4% (€399 million) and 18.2% (€356 million) respectively. These allocations reflect the high number of rural areas in these states with limited transport links. Vienna, which has a well-developed public transport system, ranks third with €307 million, or 15.7% of the funds, due to its large population. Styria follows with €293 million, while Tyrol, Carinthia, Salzburg, Vorarlberg, and Burgenland receive smaller shares.
Growing Criticism
The Climate Bonus has faced increasing criticism, with experts questioning its cost-effectiveness and broad reach.
Among those advocating for changes are Gabriel Felbermayr, head of the Austrian Institute of Economic Research (WIFO), and Holger Bonin, director of the Institute for Advanced Studies (IHS), who both suggested abolishing the Climate Bonus to ease budget pressures.
Christoph Badelt, President of the Fiscal Advisory Council, has opposed a full cancellation but called for a “more targeted design” to direct funds more effectively. The NEOS party has also criticised the scheme as a “watering can” approach, saying it spreads funds too broadly without achieving specific climate goals.
As Austria’s new government prepares to take office, the future of the Climate Bonus remains uncertain. Talks are likely to continue over how best to balance climate support with fiscal responsibility.
