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Door left open for deals as Commission calls time on coal subsidies
21 May 2007
Coal state aid is permitted under a special derogation from EU law that will expire in 2010 [1]. Although the Commission has now said that this derogation will not be replaced, it fails to outline a policy for the period after 2010. In effect, this creates a loophole through which governments can ask the Commission to allow an extension of aid for many more years.
In 2005, eight member states granted coal state aid totalling €4.1 billion, or about €11 million per day. Germany and Spain granted the most aid - around 85% of the total - with smaller amounts given by Poland, Czech Republic, Slovakia, Slovenia, Hungary and the UK. The situations in Romania and Bulgaria are still being assessed. [2]
"Such dithering and delay on the future of coal subsidies helps no one," said Mark Johnston, Greenpeace EU Energy Campaigner. "The Commission's failure to act decisively today only puts off the day when it will need to do so anyway.
"If Europe is serious about fighting climate change, as is claimed, then it must divert public money and support from polluting energy sources such as coal to clean energy options such as efficiency measures and renewable energy technologies. With today's report, the Commission has missed an opportunity to put an end to coal subsidies once and for all."
In 2005, eight member states granted coal state aid totalling €4.1 billion, or about €11 million per day. Germany and Spain granted the most aid - around 85% of the total - with smaller amounts given by Poland, Czech Republic, Slovakia, Slovenia, Hungary and the UK. The situations in Romania and Bulgaria are still being assessed. [2]
"Such dithering and delay on the future of coal subsidies helps no one," said Mark Johnston, Greenpeace EU Energy Campaigner. "The Commission's failure to act decisively today only puts off the day when it will need to do so anyway.
"If Europe is serious about fighting climate change, as is claimed, then it must divert public money and support from polluting energy sources such as coal to clean energy options such as efficiency measures and renewable energy technologies. With today's report, the Commission has missed an opportunity to put an end to coal subsidies once and for all."
Notes to Editor
[1] Coal state aid is governed by Council Regulation 1407/2002 based on Article 89 of the EC Treaty (State Aid). Article 11 of the Regulation requires a mid-term review of its application.
[2] European Commission's latest State Aid Scoreboard, COM(06)761, 11 Dec. 2006. Other figures (all for 2005) are: Hungary 38 million euro, UK 37 million euro, Slovenia 14 million euro, Slovakia 2 million euro, Czech Republic 0.3 million euro.
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