Governance of the EU-Wide Phase-Out of Fossil Fuel Subsidies by 2020

This case study examines the governance and progress of the European Union's efforts to phase out fossil fuel subsidies by 2020, specifically focusing on the mandatory removal of hard coal mining subsidies by 2018 and the broader goals for oil, gas, and coal.

• Between 2014 and 2016, the annual average value of all government support for the production and consumption of oil, gas, and coal in the EU was EUR 112 billion.
• EU member states were legally required to remove subsidies for hard coal mining by 2018, a process supported by closure aid to cover production losses for uncompetitive mines until that deadline.
• In January 2018, the European Parliament voted for progress reporting on fossil fuel subsidy phase-outs, requiring member states to include national policies, timelines, and measures in their National Energy and Climate Plans (NECPs) by the end of 2019.
• A significant portion of fiscal support for coal mining in Germany, Spain, and the Czech Republic (between 75 and 99 per cent) was dedicated to decommissioning sites and ensuring a just transition for workers and communities.
• The German government spent an estimated EUR 18.6 billion between 2005 and 2014 to support the sale of coal from hard coal mines to steel and electricity producers in North Rhine Westphalia, with an annual cost of EUR 1.86 billion.
• There is a risk that EU member states may increase transparency and make commitments in national plans without actually ending support for oil, gas, and coal. For example, while OECD data showed Germany had 23 subsidies worth EUR 3.9 billion in 2016, Germany claimed in its G20 peer review that it had only two 'inefficient' subsidies requiring removal.

APA

International Institute for Sustainable Development (n.d.). Governance of the EU-Wide Phase-Out of Fossil Fuel Subsidies by 2020. https://www.iisd.org/sites/default/files/publications/stories-g20-eu-en.pdf

Chicago

International Institute for Sustainable Development. Governance of the EU-Wide Phase-Out of Fossil Fuel Subsidies by 2020. n.d. https://www.iisd.org/sites/default/files/publications/stories-g20-eu-en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Governance of the EU-Wide Phase-Out of Fossil Fuel Subsidies by 2020 |url=https://www.iisd.org/sites/default/files/publications/stories-g20-eu-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndgovernance, author = {{International Institute for Sustainable Development}}, title = {{Governance of the EU-Wide Phase-Out of Fossil Fuel Subsidies by 2020}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/sites/default/files/publications/stories-g20-eu-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }