We are all aware that fossil fuels are the primary driver of anthropogenic climate change. Policymakers know this too. Yet, despite this knowledge, governments across Europe continue to support the fossil fuel economy through billions of euros in subsidies each year.
What are fossil fuel subsidies?
Fossil fuel subsidies are financial mechanisms that artificially lower the prices of fossil fuels and their related products. These subsidies come in various forms, such as direct payments, tax breaks, or emission trading permits. They make fossil fuels cheaper, propping up an industry responsible for the climate crisis.
In the European Union, the scale of these subsidies is staggering. According to a Climate Action Network (CAN) Europe study, the EU spent €120 billion on fossil fuel subsidies in 2022. Meanwhile, International Monetary Fund data suggests that the figure for 2023 will still be around €80 billion for the EU. And this estimate doesn’t even account for the immense costs to society, including climate-related disasters, health issues, and premature deaths. If these “externalities” were factored in, the true cost would reach hundreds of billions of euros in damages.
What does this mean for our climate?
By artificially lowering the cost of fossil fuels, governments are incentivizing their use—thereby directly contributing to climate change. This economic distortion makes fossil fuels appear cheaper than they truly are, while at the same time making it harder for renewable energy sources to compete.
The result? We are quite literally paying to worsen the climate crisis when we should be investing in climate action.
Government promises: Pledges with little progress
You might think, given the severity of the climate crisis, that governments would be taking serious action by now. Unfortunately, that’s not the case. Since 2009, the G7 leaders have promised to phase out “inefficient” fossil fuel subsidies. Yet, in 2024, they are still pledging, and little action has followed.
This inaction has led to widespread frustration. It begs the question: how long will governments continue to pledge without delivering?
The EU is also dragging its feet
The European Union is no exception to this issue. In 2022, the EU made a legally binding commitment to phase out fossil fuel subsidies through its 8th Environmental Action Programme. However, since this commitment, little to no progress has been made.
It’s as if we’re not living in a climate emergency—there’s a pervasive sense that there is still plenty of time to act. But time is running out, and we cannot afford complacency.
What’s next for the EU?
Recently, European Commission President Ursula von der Leyen sent mission letters to Wopke Hoekstra and Dan Jørgensen, the commissioners-designate, asking them to create a framework for phasing out fossil fuel subsidies.
However, the critical question remains: will they take meaningful action, or will EU member states continue to resist, asking for just “one more year” of inaction?
A Call to Action
That’s why it’s crucial that we remind the EU to follow through on its commitments. We must continue advocating for the immediate phase-out of fossil fuel subsidies if we are serious about achieving a fossil-free Europe.
If you are passionate about the future of our planet and want to ensure that Europe transitions away from its reliance on fossil fuels, join us in Brussels on October 5th at Place du Luxembourg at 14:00. Together, we can push for real change and demand a sustainable future for all.
Delay Means Death
– U.N. Secretary-General António Guterres
#StopFossilSubsidies