Europe spends €112 billion per year on fossil fuels despite Phase-out plans

The European Governments and EU are subsidising €112 billion each year for the production and consumption of fossil fuels, claims a new report from the Overseas Development Institute and Climate Action Network (CAN) Europe – violating the Paris Agreement’s phase-out plan 2020. The report, Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies (PH20202) gathered the information from 11 European countries between 2014 – 2016.
September 29, 2017 Read time: 2 mins

The European Governments and EU are subsidising €112 billion each year for the production and consumption of fossil fuels, claims a new report from the Overseas Development Institute and Climate Action Network (CAN) Europe – violating the Paris Agreement’s phase-out plan 2020.

The report, Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies (PH20202) gathered the information from 11 European countries between 2014 – 2016. It revealed the transport sector as the main beneficiary, with more than €49 billion used to support fossil fuels, including tax breaks to reduce the price of diesel.

PH2020 also found that the EU provided an annual average of €4 billion in fossil fuel subsidies through its budget, development and investment banks and funds.

Wendel Trio, director of CAN Europe, said: “The €4bn spent by the EU on fossil fuels, most of which goes to gas infrastructure, locks Europe into fossil fuel dependency for the decades to come. This violates the Paris Agreement’s requirement to make finances work for the climate.”

Other findings include industry and business benefitted just under €15 billion per year and subsidies for fossil fuel exploration in the UK, and France shows €253 million per year in public finance between 2014 – 2016 on finding new resources between 2014 – 2016. 

The report makes a series of recommendations urging European governments to lead the G7 and G20 by their commitment to phasing out fossil fuels by 2020. It also proposes an annual reporting scheme with increased transparency, ensuring energy transitions do not support fossil fuel production and; targeting any remaining subsidies to supporting works and communities to move away from fossil fuels.

Classification & Data Collection

Related Content

  • February 1, 2012
    Time for a rethink on road user charging
    There is no value in further US VMT charging trials, except to delay the inevitable. These trials should end after completion of the University of Iowa's National Evaluation of a Mileage-based Road User Charge. There is far greater promise in unleashing private operators to commence profitable, non-tolling services, then using these for toll assessment and collection as fuel distributors are currently used to collect fuel taxation. Bern Grush writes
    Read More
  • July 30, 2013
    Virginia presses ahead with tunnels upgrade despite tolls challenge
    David Crawford reviews current developments and legal/financial issues facing tunnel management in Virginia. This autumn the Virginia Department of Transportation (VDOT) in the US will defend its plan to introduce tolling on the Elizabeth River tunnels linking the cities of Norfolk and Portsmouth in the State’s Hampton Roads area. The tolling, which is due to start from February 2014, will be examined by the State’s Supreme Court later this year. The anticipated toll income, along with loans and bonds, is
    Read More
  • November 2, 2017
    RAC: over half of drivers believe congestion has worsened on UK major roads
    56% of 1,727 drivers questioned in an annual survey believe that congestion has worsened on UK major roads, which carries 65% of all traffic, despite them comprising only 13% of the country’s road network. The findings from the survey have been presented by the RAC’s Report on Motoring.
    Read More
  • May 30, 2013
    Investment in transport systems a powerful driver of long-term growth
    According to a new OECD report, boosting private sector investment in sustainable transport infrastructure will be essential as governments seek to meet long-term economic and environmental objectives at a time of constrained public finances. Mobilising Private Investment in Sustainable Transport: The Case of Land-Based Passenger Transport Infrastructure points out that investment in transport systems is a powerful driver of long-term growth. It also notes, however, that the transport sector is the second l
    Read More

Highlighted Content