Phasing out fossil fuel subsidies while ensuring European competitiveness, mitigating cost of living crisis, and promoting clean energy

TITLE: Phasing out fossil fuel subsidies while ensuring European competitiveness, mitigating cost of living crisis, and promoting clean energy

SECTION: Agriculture, Rural Development and the Environment (NAT)

Date of the section meeting: 1 April 2025

Rapporteur: Corina Murafa Benga ( RO- III)

Opinion type: Own Initiative

Context: The European Economic and Social Committee (EESC) has emphasized the urgent need to phase out fossil fuel subsidies (FFS) through tailored policies and inclusive dialogue. This initiative aims to prioritize the elimination of harmful subsidies, support vulnerable groups, and incentivize business decarbonization. The EESC's opinion contributes to discussions on shaping a competitive, crisis-proof future for Europe, focusing on sustainable energy transitions and economic resilience.

Key Points:

  • Phasing Out Fossil Fuel Subsidies: The EESC calls for the European Commission to include FFS phase-out plans in European Semester recommendations and National Energy and Climate Plans (NECPs). These plans should feature clear milestones and prioritization measures.
  • Universal Definition of FFS: The EESC advocates for a universal European definition of FFS, encompassing both direct and indirect subsidies.
  • Multi-Stakeholder Platform: The creation of a multi-stakeholder platform is recommended to share best practices across Member States and civil society.
  • Redirecting Funding: All European funding, as well as national State Aid, for new fossil fuel infrastructure should be terminated. Support should be redirected towards clean fuels and research and innovation (R&I).

Contacts: