Brussels – The EU is under increasing pressure to phase-out fossil fuel subsidies after a new report exposed the extent to which EU funds, institutions and policies continue to directly or indirectly support fossil fuel production and use.
Climate Action Network Europe (CAN Europe) found that the EU’s development banks are channelling public funds into various aspects of fossil fuel production, and that two of the EU’s main funds give preferential support to fossil fuels over alternative energy sources.
More than €12 billion was granted to fossil fuel projects by the European Investment Bank (EIB) and the European Bank for Reconstruction & Development (EBRD) between 2013 and 2015, while other EU policies provided further support via state aid, including through capacity mechanisms, and indirect measures.
CAN Europe has called for the immediate establishment of a roadmap dedicated to the phasing-out of all forms of direct subsidies by 2020. The roadmap would outline ambitious reforms to the EU’s financing facilities, policy tools and development banks.
Reform to both the transparency and evaluation of funding decisions was essential, the report argues, to ensure that all funded projects are enhancing the EU’s broader climate and energy objectives.
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