Will Europe’s key climate tool become fossil fuel subsidy scheme?

The author warns that the EU ETS reform for 2021-2030 could inadvertently subsidize coal and other fossil fuels, potentially channeling 160 billion euros to polluters. While the European Parliament and several member states advocate for emissions performance standards to exclude coal from the Modernisation Fund and Article 10c provisions, the document highlights that 90% of previous investments under these rules have supported existing fossil fuel infrastructure.

• The EU ETS risks becoming a tool for coal investment that locks in unsustainable energy infrastructure, potentially channeling an estimated 160 billion euros toward major polluters between 2021-2030, based on an average price of 20 euros per tonne.
• Under Article 10c, which allows certain countries like Poland to issue free pollution permits to energy providers for diversification and modernization, 90% of investments have been directed toward existing fossil fuel infrastructure.
• The European Parliament and governments from Denmark, France, Germany, Luxembourg, Netherlands, Sweden, and the United Kingdom have pushed for emissions performance standards to ensure the Modernisation Fund and other measures do not support solid fossil fuel energy generation such as coal.
• A report by CAN-Europe and the Overseas Development Institute indicated that 11 European governments and the EU spent 112 billion euros annually on oil, gas, and coal projects in Europe from 2014-2016, despite pledges to end fossil fuel subsidies by 2020.

APA

Amaral, K. (2017). Will Europe’s key climate tool become fossil fuel subsidy scheme? Carbon Market Watch. https://carbonmarketwatch.org/2017/11/06/will-europes-key-climate-tool-become-fossil-fuel-subsidy-scheme/

Chicago

Amaral, Kaisa. Will Europe’s key climate tool become fossil fuel subsidy scheme? Carbon Market Watch, 2017. https://carbonmarketwatch.org/2017/11/06/will-europes-key-climate-tool-become-fossil-fuel-subsidy-scheme/.

Wikipedia

{{cite press release |last1=Amaral |first1=Kaisa |title=Will Europe’s key climate tool become fossil fuel subsidy scheme? |publisher=Carbon Market Watch |date=6 November 2017 |url=https://carbonmarketwatch.org/2017/11/06/will-europes-key-climate-tool-become-fossil-fuel-subsidy-scheme/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{amaral2017will, author = {Amaral, Kaisa}, title = {{Will Europe’s key climate tool become fossil fuel subsidy scheme?}}, publisher = {Carbon Market Watch}, year = {2017}, month = nov, url = {https://carbonmarketwatch.org/2017/11/06/will-europes-key-climate-tool-become-fossil-fuel-subsidy-scheme/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }