Posted on: 03/10/2017
The European Union (EU) and its member states are subsiding fossil fuels by at least €112 billion (£99bn) a year, according to a new report.
The Overseas Development Institute (ODI) think tank said that, between 2014 and 2016, the EU and 11 individual countries within the bloc subsidised the production and consumption of fossil fuels.
The transport sector was the main beneficiary, hoovering up €49bn, which ODI said included tax breaks to bring down the cost of diesel.
‘Fuelling dangerous climate change’
“This research shows that governments in Europe and the EU are continuing to subsidise oil, gas and coal, fuelling dangerous climate change with taxpayers’ money both at home and abroad,” the ODI said.
The UK handed out €2bn in subsidies, according to the report.
Subsidies for the transport sector – including tax breaks to bring down the price of diesel – stood at £7.4bn.
Household subsidies, such as value added tax (VAT) reductions on fuel, amounted to £3.6bn.