Ending fossil fuel subsidies in Europe

 

Fossil fuel subsidies represent one of the biggest barriers to short-term and long-term climate action. Without cutting off financial support for one of the causes of climate change – fossil fuels – it will be extremely difficult to effectively overcome the climate crisis. Unfortunately, the financial support to the fossil fuel industry continues to flow. This trend stands in the way of increasing support for climate action across Europe, and potentially increasing Europe’s international support for mitigation and adaptation in developing countries.

 

 

Fossil fuel subsidies distort markets and dis-incentivise investments in renewable energy and energy efficiency. They impose large fiscal costs on governments and drain scarce financial resources away from key sectors such as education and health care. In addition, these subsidies negatively impact local environments and water sources and cause illness and premature deaths due to local air pollution and heightened congestion. Despite the overwhelming evidence against fossil fuel subsidies, governments around the world continue to pump approximately EUR 520 billion per year into polluting fuels such as coal, oil, gas and diesel. The figures speak louder than words: billions of euros of public finance are still being provided to polluting industry, superseding all support for renewable energy and international climate finance which protects our communities against the very impacts of burning fossil fuels. 

Within the EU and across the wider Europe, financial support for fossil fuels has gained increasing attention in recent years, both at country level and across the EU’s financial institutions and policy processes. But the EU is yet to tie together all the separate strands of how financial support for fossil fuels can be equitably and quickly phased out across EU Member States and neighbouring countries. 

European development banks need to get out of fossil fuels. Financial institutions, including development banks are important actors in the global effort to speed up the transition towards zero carbon economies. But rather than meeting the potential to achieve global climate action objectives, these financial actors are still providing unbalanced support for fossil fuels. Read More  

 

Click here to learn more about fossil fuel subsidies, what the political situation is and what the EU must do.  Click here to learn more about the avenues for change.

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	Data on fossil fuel subsidies Here you find a range of useful external resources and data on fossil fuel subsidies. Read More
	CSO reports and publications Here you find civil society organisations' reports and publications related to the issue of shifting financial flows and fossil fuel subsidies. Read more
	Visual material: Shifting financial flows On this page you can find visual material produced by CAN Europe on the topic of fossil fuel subsidies phase out and shifting financial flows. Read more
	Media coverage of shifting financial flows and fossil fuel subsidies Here we collect a sample of the media coverage of shifting financial flows and fossil fuel subsidies. Read more