Protests by farmers in France aimed at Paris highlighted how policy debates on fossil fuels touch rural life. Amid threatened blockades, the government paused certain mitigation steps in response to appeals over diesel tax exemptions used in agriculture. France remains the European leader in subsidies tied to fossil fuels, a position that echoes across the continent as Spain, Italy, and Germany face their own rural protests tied to energy costs and rural livelihoods.
The European Parliament moved in November to push for an end to both direct and indirect fossil fuel subsidies at national, regional, and global levels, aiming for action as soon as possible and no later than 2025. The goal is a 55% cut in greenhouse gas emissions by 2030, preserving the target of keeping global warming close to the 1.5 degree limit. The drive centers on reducing emissions while addressing the real-world consequences felt by households and industry during the transition away from fossil fuels.
120% Increase
Subsidies across EU member states remained roughly steady between 2015 and 2021 at about 56 billion euros, but surged to 123 billion in 2022 amid energy price crises and the fallout from Russia’s invasion of Ukraine. In response, the EU implemented more than 230 temporary subsidy measures to shield households and various sectors, according to a report by the European Commission.
Directives show subsidies directed mainly to industry, energy, and transport, with smaller shares flowing to households, agriculture, and cross-cutting sectors. In 2022, funding for transport, housing, and the energy sector rose sharply. The subsidies include support mechanisms that influence research, tax relief, and price supports, all intended to back innovation and R&D in fossil-fuel dependent industries.
Estimates indicate the total will stay around 110,000 million euros in 2023, according to the latest European Environment Agency data. Only about 47% of approved subsidies were scheduled to expire by 2025, while roughly 52% had no specified end date. Renewable energy subsidies fell in 2021, the first decline since 2015, and stood at about 86 billion euros, remaining flat in 2022. [Source: European Environment Agency; European Commission findings]
As Soon as Possible
The European Commission notes that using current measures would cut emissions by about 51%, and it urges a focus on eliminating subsidies quickly while prioritizing innovation and support for vulnerable communities during the transition rather than maintaining fossil-fuel subsidies. [Source: European Commission statements]
At the Dubai Climate Summit (COP28), the Minister of Ecological Transition and colleagues from France, the Netherlands, Denmark, Canada, Finland, Belgium, Austria, Ireland, and Luxembourg signed onto a declaration to end subsidies before 2025. The European Commission has requested Spain to outline how and when it will stop subsidizing fossil fuels within its National Integrated Energy and Climate Plan (PNIEC) and its 2030 road map. [Source: COP28 declarations]
Greater Ambition
A June 30 deadline governs country submissions of climate action plans and the Commission’s evaluation of ambitions. So far, Denmark, Germany, Ireland, Italy, and Sweden have signaled plans to phase out fossil fuel subsidies, detailing the legal steps or policy reforms they intend to enact. The emphasis remains on tax reform and coordinated action across ministries and tax authorities to ensure a coherent shift away from fossil subsidies. [Source: climate action planning processes]
Officials note that this effort involves multiple ministries and ongoing dialogue about fiscal reform. The move is designed to align national budgets with climate goals while maintaining social protections for workers and families during the transition. [Source: government statements]
In related developments, public demonstrations have surfaced alongside climate and energy debates, reflecting concerns about how the energy transition interacts with social equity and gender and minority issues. [Source: regional reporting]
Agitation from Discomfort
The agriculture minister in Spain has argued that far-right groups are attempting to harness rural unrest to push extremist agendas and to oppose international frameworks like the United Nations 2030 Agenda. These tensions have complicated the approval of measures such as the European Nature Restoration law and have influenced the broader climate and energy policy environment ahead of elections. [Source: ministerial remarks and regional coverage]
As the European Parliament elections approach, stakeholders emphasize that the outcome could shape the pace and direction of climate action. The pressure to accelerate progress on climate targets remains high while governments weigh political and social pressures in their planning and budgetary decisions. [Source: electoral context and climate discourse]