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

  • November 27, 2020
    Global mobility study: world on the move
    ERF reviews impact of new mobility on road infrastructure in 20 countries pre-Covid
    Read More
  • March 17, 2016
    Inland waterways can de-stress city roads
    David Crawford looks at an under-utilised solution for city-centre deliveries. The use of rivers and canals for moving freight is a well-established mode in North Western Europe, where it can take advantage of an intensively developed network. In the Netherlands, 40% of the total volume of goods transported internally goes by water; the figure for Flanders (the neighbouring Dutch-speaking region of Belgium) is 11.5%.
    Read More
  • January 10, 2017
    Owning a car will be a thing of the past in less than a decade, say researchers
    UK automotive executives expect that more than half of today’s car owners will not want to own a car in less than a decade, according to KPMG’s Global Automotive Executive Survey 2017. The survey found that 74 per cent of UK automotive executives think that until 2025, more than half of car owners today will not want to own a vehicle, as self-driving technology and mobility as a service will take priority. The report findings revealed that 62 per cent of UK automotive executives view diesel technolog
    Read More
  • March 3, 2023
    C-ITS in Europe: It’s the governance, stupid!
    Cooperative ITS (C-ITS) is coming – in fact, it’s already here. But who has responsibility for making it work? Richard Lax of Kapsch TrafficCom thinks there are lessons to be learned from the European experience
    Read More

Highlighted Content