Enerdata Continues Helping European Commission Monitor Fossil Fuel Subsidy Phase-Out
Following the success of the recently published study on energy prices, costs and subsidies in Europe, the Directorate-General for Energy of the European Commission has awarded a contract extending the study to Enerdata and partners Trinomics, Cambridge Econometrics and VITO. The new contract began in April 2019 and last one year.
The project is designed to help build the legislative foundation of the late-2018 regulation titled Governance of the Energy Union and Climate Action, which is available here. The purpose of that regulation is to achieve the EU’s 2030 and long-term climate goals, in line with the Paris Agreement.
We at Enerdata will contribute our expertise on energy subsidies and energy taxation systems, by providing both a reliable theoretical framework and a thorough fact-based analysis. By doing so, Enerdata will help the European Commission define the reporting that Member States should implement to phase out energy subsidies, and especially fossil fuel subsidies. The new project will also extend the geographical scope of the original project, which was limited to the European Union, to also include all G20 countries.
EU Publishes Enerdata Prices, Costs and Subsidies Study
January 10, 2019
The European Commission recently published a report summarizing the main conclusions of a study conducted by Enerdata and partners Trinomics and Cambridge Econometrics.The study focuses on prices, costs and subsidies for energy in Europe, by evaluating the role of competition in the formation of prices – both wholesale and retail – and analysing the impact of energy bills on household budgets, as well as on the competitiveness of European industries (by industrial sectors) in the global market. Enerdata coordinated a network of experts in the EU’s 28 member states who were tasked with identifying and quantifying energy subsidies.
Our work showed that energy-related subsidies have increased 12%, from 150 billion euros in 2008 to 168 billion in 2016. This growth in public financing for the energy, transport and agriculture sectors in the EU can be explained by the strong support for renewable energy production in the member states (which totalled 75 billion euros in 2016), in line with European commitments.
Even more surprising – and contrary to the European goal of eliminating fossil fuel subsidies – support for hydrocarbons increased slightly to 55 billion euros in 2016, of which 28 billion went to petroleum products. In total, energy consumption and production subsidies were almost 90% of the 2016 total. Subsidies for research and development, and energy efficiency were just slightly more than 10% of the total disbursed in 2016.