European nations ‘spending €112bn a year on fossil fuel subsidies’

Governments in 11 European countries are handing out subsidies worth more than €112 billion (£98.4bn) every year for fossil fuel production. That’s according to a new report from the Overseas […]

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By Priyanka Shrestha

Governments in 11 European countries are handing out subsidies worth more than €112 billion (£98.4bn) every year for fossil fuel production.

That’s according to a new report from the Overseas Development Institute and Climate Action Network (CAN) Europe, which analysed subsidies given to oil, gas and coal projects between 2014 and 2016.

The countries include Czech Republic, France, Germany, Greece, Hungary, Italy, Netherlands, Poland, Spain, Sweden and the UK.

It claims the transport sector was the main beneficiary, with €49 billion (€43bn) used to support fossil fuels – a total of 44% the government support identified.

The report adds industry and business received around €15 billion (£13.2bn) a year in fossil fuel subsidies, with support provided for oil and gas exploration.

It claims the UK and France gave €253 million (£222m) a year in public finance on finding new resources.

Wendel Trio, Director of CAN Europe said: “The €4 billion (£3.5bn) 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.

“In addition, the fact that over €2 billion (£1.75bn) a year is provided by EU Member States to support coal-fired power, the dirtiest of all fossil fuels, is unacceptable.”