European industrialists question focus of energy subsidies

European industrialists question the focus of energy subsidies, suggesting that money should instead be spent reducing fossil fuel demand and transitioning to renewables.

March 5, 2023 . 2:49 PM

1 min read

Europe should not be spending billions on subsidies for fossil fuel consumption but be focusing instead on reducing demand and the transition to renewables, according to leading European industrialists.
Dimitri Papalexopoulos, chair of Titan Cement and vice-chair of the European Round Table for Industry, said it was understandable that governments were trying to ease the pain of soaring energy prices for households and businesses this winter.
Global subsidies for fossil fuel consumption were more than $1tn last year, the highest amount on record.
Bruegel estimates that more than €657bn has been allocated by EU member states to shield consumers from rising energy costs since September 2021.
The European Commission is putting the final touches to a package of measures designed to respond to the Inflation Reduction Act in the US, which offers some $369bn in clean energy incentives.