Fossil fuel subsidies to face tighter EU scrutiny

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Fossil fuel subsidies to face tighter EU scrutiny
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The European Commission wants to increase scrutiny of whether countries are phasing out fossil fuel subsidies fast enough to meet climate goals, under EU rules due this year.

EU countries spent 56 billion euros on fossil fuel subsidies in 2019, with 15 states spending more on fossil fuels than green energy, the European Court of Auditors said in a report on Monday.

Most fossil fuel subsidies in EU countries are tax cuts or exemptions. EU tax rules also mean highly-polluting fuels such as coal face lower levies than some cleaner alternatives or electricity. Brussels last year proposed an overhaul of minimum EU tax rates, to favour clean fuels over the dirtiest and least energy-efficient. Fossil kerosene, for example, would lose its EU tax exemption while coal, gas and heavy fuel oil rates would rise.

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